US markets closed lower as investors fret over rising yields

08 Feb 2018 Evaluate

The US markets closed lower on Wednesday, after failing to defend intraday gains as investors struggled to adjust to an investment environment marked by both rising bond yields and signs of inflation. The market’s move south coincided with a spike in the 10-year Treasury yield in the wake of the news of a two-year budget deal announced by top senators that would significantly raise fiscal spending. Congressional leaders reached an agreement on a two-year budget pact that would increase fiscal spending by $300 billion on the back of a big increase in military spending. The deal, which still needs to be approved by the Congress, is at least likely to put to rest fears of another government shutdown. Separately, Chicago Fed President Charles Evans said there is a hint of inflationary pressure in recent economic reports but not many actual increases in consumer prices. As such, the central bank can hold off raising rates until midyear or so in order to assess the incoming inflation data. Evans is not a voting member of the Fed’s interest-rate committee this year and he has been a leading dove among his colleagues.

On the economy front, consumer borrowing remained strong in December although slower than the torrid pace seen in the prior month. Total consumer credit increased $18.4 billion in December to a record seasonally adjusted $3.84 trillion, posting an annual growth rate of 5.8%. This was down from a revised $31 billion rate in the prior month. The prior two months were revised higher by $5.5 billion. Revolving credit, like credit cards, rose 6% in December, less than half the 13% pace seen in November. Revolving credit is $1.03 trillion, the highest on record. Non-revolving credit, typically auto and student loans, rose 5.7% in December after an 8.6% rise in the prior month. In the fourth quarter, consumer credit rose at a 7.7% annual rate, the strongest quarter of the year. For all of 2017, consumer credit rose at a 5.4% rate, down from a 6.7% rate in the prior year. Most of the slowdown was in non-revolving credit. The data does not include mortgage debt.

The Dow Jones Industrial Average slipped 19.42 points or 0.08 percent to 24,893.35, the Nasdaq dropped 63.898 points or 0.90 percent to 7,051.98, the S&P 500 edged lower by 13.48 points or 0.50 percent to 2,681.66.

Create stable, long-term investment portfolio with strong, consistent stocks.

Start Research-backed Investing ...Now. Subscribe to Sapphire

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Fiduciary-first advisory model.
As SEBI-registered IAs, we are legally and ethically bound to act in the best interests of our clients. We do not sell or distribute any financial products. This ensures our guidance is 100% unbiased and conflict-free.
Deep fundamental research + robust valuation discipline.
Built on more than 15 years of equity research, our framework combines quality assessment, intrinsic value estimation, and a sensible margin-of-safety approach.
Process—not predictions.
We don’t rely on guesswork or market timing. Instead, we focus on asset allocation, risk management, and long-term compounding.
Technology + Human Intelligence.
We believe a combination of both is essential for investing success. We constantly innovate and upgrade in-house tools, financial X-rays, and portfolio analytics so that our team of analysts and advisors are equipped with the best.
Partner with Clients.
We follow a DIWM (Do-It-With-Me) approach where we partner clients in setting goals, financial planning, educating on our investing process and share decision-enabling resources transparently with our clients who retain control on execution.

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

Investing in stocks, mutual funds, debt, and gold
Quality-at-Reasonable-Price way of investing in stocks
Constructing Direct Stock Portfolios with Core, Booster, and Amplifier stocks
A Mutual Fund Portfolio that delivers consistent out-performance and meaningful diversification (low overlap)
Periodic review and rebalancing
Clear Buy-Sell-Hold, and Position-sizing frameworks

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.