Bonds & Stocks
US equity futures pointed to a pause for Wall Street’s rally fueled by optimism that the Federal Reserve will start cutting interest rates this year. Contracts on the S&P 500 were little changed after the gauge climbed 1% above its average price of the past 50 days. Ten-year Treasuries extended their advance, with the yield dipping two basis points to 4.47%.
Economy
The standard 60/40 portfolio may struggle if inflation conditions remain more volatile largely due to shortfalls on the equity side of the equation rather than bonds. Leaning on number strategies — inflation-based country allocations, theme investing and factor portfolios — can help mitigate equity portfolio underperformance.
World
German factory orders unexpectedly dropped in March — pointing to persistent weakness in a sector that’s already lagging behind the improvement in the wider economy. Demand fell 0.4% from the previous month, defying economists’ expectations for a 0.4% gain. Major orders drove the decline, without which there would have been growth of 0.1%, the statistics office said Tuesday in a statement.