Rising Long-term Treasury Rates Suppress the Growth of U.S. Stocks

    The continue rising of long-term Treasury rates made investors worried that rising borrowing costs will affect corporate earnings. Investors also worrying about the prospect of the economic recovery, thereby suppress the market's growth momentum.

    In addition, the number of people applying for unemployment benefits reached a one-month high of 861,000 last week, and the rescue plan has not been launched. On Thursday, U.S. stocks closed down across the board, with the Nasdaq and the Russell 2000 small-cap indexes preform weak, and the tech-heavy Nasdaq 100 down for three days.

    Likewise, U.S. lumber prices doubled in just three months, climbing to $1,000.

    According to a National Association of Home Builders survey, homebuilders are worrying about rising of lumber pric4 and other construction costs, delayed ordering construction materials, and housing starts decline in January. In addition, home builders are also worried that rising interest rates will affect the housing market.

    The US 10-year Treasury rate has a certain "first move" effect, which reflects the market's expectation that the Fed may withdraw from quantitative easing early, which is contrary to various quantitative easing policies at this stage.

    It can only be said that the US economy still falls in various contradictions.