Amid a global bond selloff, Wall Street remains resilient. Friday's US jobs report beat expectations, strengthening the case for Fed rate hikes, yet the S&P 500 managed to post a weekly gain, and the Nasdaq 100 also rose. Credit spreads are tight, hedging costs are low, and market functioning has deteriorated only modestly. According to JPMorgan Chase, liquidity in the US Treasury market has worsened, but equity index futures and corporate bond ETFs show little stress. Strong economic growth and corporate earnings are underpinning the market, and the AI-driven investment boom continues. Colin Martin of Schwab Center for Financial Research notes that financial conditions remain accommodative, and with corporate earnings growing more than 20% year over year, concerns about borrowing costs are muted. Meanwhile, some warn that accelerating rate increases could eventually trigger a pullback in risk assets.
JPMorgan Chase & CoJPMorgan is cited only for its observation that US Treasury market liquidity has worsened, a passing context mention with no company-specific development.
