Latest news with #Standard&Poor
Los Angeles Times
5 days ago
- Business
- Los Angeles Times
Wall Street glides to the end of its best month since 2023
NEW YORK — Wall Street closed its winning week and month with a quiet Friday following a mixed set of profit reports from Gap, Ulta Beauty and other companies navigating the challenges created by President Donald Trump's on-and-off tariffs. The Standard & Poor's 500 finished the day nearly unchanged after edging down by less than 0.1%. The Dow Jones Industrial Average added 54 points, or 0.1%, and the Nasdaq composite slipped 0.3%. Gap weighed on the market even though the retailer reported stronger profit and revenue for the latest quarter than analysts expected. The company behind Banana Republic and Old Navy fell 20.2% after saying tariffs on imports from China and other countries could add up to $300 million to its costs this fiscal year. It has strategies set to mitigate up to half of that before it hits its profits. This week and month on Wall Street have been dominated by questions about what will happen with Trump's tariffs, which investors worry could grind the economy into a recession, slash companies' profits and layer even more challenges on households already sick of inflation. Hopes had largely been rising that the worst of such worries had passed, which in turn sent stocks rallying, after Trump paused his tariffs on both China and the European Union. A U.S. court then on Wednesday blocked many of Trump's sweeping tariffs. It all sent the S&P 500 in May to its first winning month in four and its best since November. But the tariffs remain in place for now while the White House appeals the ruling by the U.S. Court of International Trade, and the ultimate outcome is still uncertain. Trump also briefly shook markets shortly before Wall Street opened for trading Friday, when he accused China of not living up to its end of the agreement that paused their tariffs against each other. 'So much for being Mr. NICE GUY!' Trump said on his Truth Social platform. The impact was limited though, and futures for U.S. stock indexes quickly pared their losses. Since Wednesday's ruling, analysts and investors have been saying Trump and his administration would likely look for new avenues to impose tariffs on trading partners. Trump has said he's using tariffs to bring manufacturing jobs back to the United States and that U.S. households and businesses may feel some pain in the process. Friday's most influential losses came from several Big Tech stocks. Nvidia fell 2.9% to give back some of its gain from earlier in the week after it topped analysts' expectations for profit in the latest quarter. It was the single heaviest weight by far on the S&P 500. On the winning side of Wall Street was Ulta Beauty, which rose 11.8% after the retailer reported stronger sales and profit than analysts forecast. It also raised the top end of its forecasted range for revenue this fiscal year even though CEO Kecia Steelman called the operating environment 'fluid.' Costco climbed 3.1% after the retailer's results and revenue for the latest quarter edged past analysts' expectations. Red Robin Gourmet Burger soared 62.9% after reporting a profit for the latest quarter, when analysts expected a loss. Shares of SharpLink Gaming fell 3.2% to trim their gain for the week to a still-whopping 1,041.4% after the marketing company said it would raise $425 million to buy the cryptocurrency on the Ethereum blockchain. The company delivers leads to U.S. sportsbooks and global casino companies, and it has been expanding into the global crypto gaming market. All told, the S&P 500 edged down 0.48 to 5,911.69 points. The Dow Jones Industrial Average rose 54.34 to 42,270.07, and the Nasdaq composite slipped 62.11 to 19,113.77. In the bond market, Treasury yields eased after a report showed that the measure of inflation that the Federal Reserve likes to use was slightly lower in April than economists expected. A separate report from the University of Michigan said that sentiment among U.S. consumers was better in May than economists expected. Sentiment improved in the back half of the month after Trump paused many of his tariffs on China. 'Overall, consumers see the outlook for the economy as no worse than last month, but they remained quite worried about the future,' according to Survey of Consumers Director Joanne Hsu. The yield on the 10-year Treasury eased to 4.39% from 4.43% late Thursday. The two-year Treasury yield, which more closely tracks expectations for what the Fed will do with overnight interest rates, slipped to 3.90% from 3.92%. The Fed has left its benchmark borrowing rate steady so far this year after cutting it at the end of 2024 to give the economy more breathing room. Fed officials have said they want to wait longer to see how tariffs will affect inflation and the economy before making their next move. While lower interest rates can give the economy a boost, they can also fan inflation higher. In stock markets abroad, European indexes were mixed, while Asian markets fell. Choe writes for the Associated Press.
Yahoo
5 days ago
- Business
- Yahoo
How to buy an annuity: Get passive income for life
An annuity offers a stream of cash flow and the safety that you won't outlive your income during retirement. Annuities are a popular retirement strategy, and you can buy them from an insurance company with a variety of features, depending on your specific financial needs and goals. Here's how to purchase an annuity and get passive income for life. Annuities are highly specialized products that offer a range of potential benefits, but they're complex and difficult to get out of if you change your mind. So, the best place to begin is to evaluate your own financial needs. An annuity provides cash flow over an extended period of time, potentially for life. It also offers various tax advantages that can help you defer taxes on the investment. You'll need to understand how that fits into your financial circumstances and whether an annuity is a good investment for you. What is your budget likely to be in retirement? Will you need to fill a gap in your budget with the passive income of an annuity? Does it make sense for you to earn lower long-term returns for the safety of an annuity's cash flow, as opposed to potentially much higher returns in stocks? Do you need cash flow right now, or can you wait a decade or more until you need the income? Do you want an annuity that offers income for life or one that offers it for a fixed period? Do you want an annuity just for yourself or for a surviving spouse, too? Annuities can provide a lot of features and benefits, meaning they can fit the needs of many individuals, though extra benefits increase the cost of the contract. New to annuities? Annuities are complicated and a bit different from other financial products. Learn how annuity fees and commissions work and the common annuity terms that are helpful to know. Once you've assessed your needs, you can determine which annuity may fit those needs. Annuities come in a variety of different types, depending on how they generate money and when you receive that money.A fixed annuity guarantees a minimum return on your investment and will pay out over a specified term.A variable annuity invests in a variety of mutual fund-like assets that offer the potential for higher returns. The annuity's return and payout depend on the investments' performance and the expenses they indexed annuity offers a return that tracks an index, such as the Standard & Poor's 500 Index, which owns hundreds of America's best companies. This type of vehicle usually caps your upside potential while providing downside protection. Annuities can also be divided by when the cash flow annuities pay out at a specified time in the future, perhaps at some age in retirement, potentially after decades of annuities begin paying out within a year or less. In addition to these broad categories, annuities may offer a range of features that provide additional advantages, known as riders. For example, you can structure an annuity to offer a cash payout on death, much like life insurance. You can also structure an annuity to pay for a specific period of time, such as 20 years or even for life. Annuities can also be set up to pay out to a surviving spouse, ensuring that they continue to enjoy the annuity's income for the rest of their life. Annuities are contracts that are typically created by insurance companies, so you can contact one of the best annuity companies to begin the purchase process. But you can also purchase them through a top financial advisor and some banks. Annuities are not backed by the U.S. government, so you'll want to select an annuity provider that has the ability to pay the contract's claims. To select a strong provider, you'll want to evaluate firms that have top financial strength ratings from A.M. Best or other rating agencies. It can also be worthwhile to look for high customer satisfaction scores, including from reviewers such as J.D. Power. While it can be important to look for the best annuity rates, you'll also want to consider other factors, such as whether the company offers annuities with death benefits (and how much), as well as their policy on surrender fees if you opt to close the annuity early. You'll also want to know the company's administrative charges, which can be hefty. Get started: Match with an advisor who can help you achieve your financial goals When you've decided on an annuity and a provider, you can begin the application process. Annuities are tremendously complex, and the contracts can run dozens of pages. It's important to carefully read the document and fully understand your responsibilities and rights under the contract. You do not want to learn you're not getting what you expected decades down the road. You'll need to fill out various personal and financial information as part of the application. Annuity rates change, so fill out the application in a timely manner if you want to receive those benefits. You can pay for your annuity in different ways, depending on the type of annuity and its terms. You pay cash for the annuity but may be able to purchase it through a tax-advantaged account such as a 401(k), 403(b) or IRA. You can also choose to purchase an annuity with a single lump sum or fund the contract with a series of premium payments over time. You may also transfer an existing annuity to a new annuity as part of a tax-free 1035 exchange. However, you may still pay substantial transfer fees for moving from one provider to another. An annuity can be the right purchase at various points in your financial life. For some individuals, it makes more sense to invest in lower-fee, higher-return investments such as stock index funds for decades. You can likely earn higher returns and pay lower fees, and then decades later invest in an immediate annuity if you decide you need the income then. This approach can also work well inside a tax-advantaged account such as a 401(k), 403(b) or IRA. These accounts allow your money to compound in high-return investments without the drag of taxes, and then you can purchase an immediate annuity near retirement for the income. Annuities can also make sense for higher earners who are looking for investments that earn tax-deferred income, especially once they've exhausted other tax-advantaged accounts. Regardless of when you decide to purchase an annuity, it can make sense to begin investing early so that you give your money more time to compound. If you're considering buying an annuity, it's important to carefully consider how it meets your needs. Because annuities are complex financial contracts, it's essential to understand them fully — in particular, their costs — so that you know exactly what you're buying and the benefits it provides. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
Los Angeles Times
6 days ago
- Business
- Los Angeles Times
A global rally for stocks loses steam amid questions about what will happen to Trump's tariffs
NEW YORK — A big rally for stocks that began in Asia on Thursday lost steam after sweeping into Europe and the United States amid uncertainty about what will happen next after a U.S. court blocked many of President Trump's sweeping tariffs. The Standard & Poor's 500 rose 0.4% after giving up more than half of an early gain. The Dow Jones Industrial Average added 117 points, or 0.3%, and the Nasdaq composite rose 0.4%. It's a downshift after stocks initially leaped nearly 2% in Tokyo and Seoul, where markets had the first chance to react to the ruling late Wednesday by the U.S. Court of International Trade. The court said that the 1977 International Emergency Economic Powers Act that Trump cited for ordering massive increases in taxes on imports from around the world does not authorize the use of tariffs. The ruling at first raised hopes in financial markets that a hamstrung Trump would not be able to drive the economy into a recession with his tariffs, which had threatened to grind down on global trade and raise prices for consumers already sick of high inflation. Trump has said he wants to bring manufacturing jobs back to the United States, and he warned the process could cause some pain for U.S. households. But the tariffs remain in place for now while the White House appeals the ruling, and the ultimate outcome is still uncertain. The court's ruling also affects only some of Trump's tariffs, not those on foreign steel, aluminum and autos, which were invoked under a different law. Trump 'is still able to impose significant and wide-ranging tariffs over the longer-term through other means,' according to Ulrike Hoffmann-Burchardi, chief investment officer of global equities at UBS Global Wealth Management. Such uncertainty helped dampen the excitement in financial markets as trading headed through Europe into the United States, where the moves were much more modest than in Asia. The U.S. court's move was nevertheless seen as a positive for financial markets. 'The bar is raised for President Trump to resurrect his tariffs,' said Brian Jacobsen, chief economist at Annex Wealth Management. 'Markets are pricing that this is a better type of uncertainty than what we've had since Liberation Day,' which is what Trump called his April 2 announcement of a worldwide set of sweeping tariffs. The S&P 500 has pulled within 3.8% of its all-time high after dropping roughly 20% below at one point last month. On Wall Street, tech stocks led the way after Nvidia once again topped analysts' expectations for profit and revenue in the latest quarter. The chip company has grown into one of the U.S. market's largest and most influential stocks because of the frenzy around artificial-intelligence technology, and its 3.2% rise was the strongest force by far lifting the S&P 500. an AI application software company, jumped 20.8% after it reported stronger profit than analysts expected for its latest quarter. It also said the U.S. Air Force increased the maximum possible value for its contract by $350 million to $450 million. The company's revenue last quarter totaled $108.7 million. E.l.f. Beauty was another big winner and rose 23.6% after the cosmetics company delivered a stronger profit for the latest quarter than analysts expected. It also said it agreed to buy Hailey Bieber's Rhode skincare brand in a $1 billion deal. Rhode had $212 million in net sales in the 12 months through March. Bieber, a model and the wife of singer Justin Bieber, will be Rhode's chief creative officer and head of innovation and also a strategic advisor to the combined companies. They helped offset a drop for Best Buy, which fell 7.3% even though it reported a stronger profit than expected. Its revenue fell short of analysts' forecasts. The electronics retailer also cut its forecasted ranges for revenue and profit over the full year on the assumption that 'tariffs stay at the current levels for the rest of the year, and there is no material change in consumer behavior from the trends we have seen in recent quarters,' Chief Financial Officer Matt Bilunas said. Many companies have recently said that the uncertainty caused by tariffs is making it too difficult to offer any financial forecasts for the upcoming year. All told, the S&P 500 rose 23.62 points to 5,912.17. The Dow Jones Industrial Average added 117.03 to 42,215.73, and the Nasdaq composite gained 74.93 to 19,175.87. In the bond market, Treasury yields eased following some mixed reports on the economy. One said that the U.S. economy likely shrunk by less in the first three months of the year than earlier estimated. Another said slightly more U.S. workers applied for unemployment benefits last week than economists expected. The yield on the 10-year Treasury fell to 4.43% from 4.47% late Wednesday. In stock markets abroad, Japan's Nikkei 225 jumped 1.9% to help lead Asian markets higher, while stocks rose 1.4% in Hong Kong and 0.7% in Shanghai. South Korea's Kospi rallied 1.9% after the Bank of Korea cut its key interest rate to ease pressure on the economy. The moves for European stocks were much more muted. France's CAC 40 and Germany's DAX both swung from early gains to modest losses. Choe writes for the Associated Press.
Yahoo
7 days ago
- Business
- Yahoo
How to invest in ETFs
Exchange-traded funds, or ETFs, are funds that hold many different assets and trade on an exchange like a stock. ETFs allow investors to hold a diversified portfolio for the cost of a single share. They often come with low costs and tax advantages that make them popular with investors. Exchange-traded funds, or ETFs, are an increasingly popular way to invest in the financial markets. An ETF holds stakes in many different assets, and by buying a share of the fund, you own a tiny position in each of its holdings. With ETFs, investors can easily create a diversified portfolio and many funds charge only a modest fee while offering some great benefits. If you're looking to invest in ETFs, here's how to get started with them. Like a mutual fund, an ETF holds positions in many different assets, typically stocks or bonds. The holdings usually track a preset index such as the Standard & Poor's 500 or the Dow Jones Industrial Average, rather than actively investing. So, ETFs are typically passive investments. And the fund's wide holdings provide diversification, reducing – but not eliminating – risk. ETFs are often focused around a specific kind of asset, investing in a specific collection of stocks, such as value or growth stocks, specific countries or industries, among other possible categories. This allows investors to buy a fund that offers them targeted exposure to the kinds of assets they want. ETFs charge a fee for this service based on a percentage of money invested in the fund. For example, in 2023 the average ETF charged 0.36 percent annually, or about $36 for every $10,000 invested, according to Morningstar. But you can find funds that charge much less, even just a few dollars, and this low cost as well as their convenience make ETFs very popular for investors. ETFs trade on the stock exchanges just like a normal stock. Here's how to invest: The U.S. market has thousands of ETFs trading, so you need to know what you want to buy. Figuring out which ETF you want may take some work. ETFs based on major indexes are good options for beginners. They offer broadly diversified exposure to some of the market's best companies. Even legendary investor Warren Buffett recommends investors purchase an index fund tracking the S&P 500, which includes hundreds of America's largest firms. Pay particular attention to the ETF's expense ratio, which tells you how much you'll pay as a management fee. Note the ETF's ticker symbol, a short code of three or four letters, because you'll need it later. Here is Bankrate's list of some of the best ETFs to consider. How much can you invest in your ETF? It doesn't take a lot to get started, and these days the best brokers allow you to buy fractional shares with no trading commission. This means you can go pick up a share of an ETF or part of a share with some of your spare change. You build wealth over time by continuing to add money to the market. When you've figured out how much you can invest now, determine how much you can invest regularly, say, each month. Then commit to adding that money to your portfolio and growing your nest egg. Finally, turn to your broker to place an order. If you don't have a brokerage account, it often takes just a few minutes to open one, and a handful of brokers such as Robinhood will let you get started immediately, and even let you fund your account instantly. If you have money in your account already, you can place the trade using the ticker symbol and then buy shares or partial shares. Bankrate's broker reviews can help you find a broker if you don't already have one. ETFs offer some major advantages and a handful of disadvantages to investors. Here are some of the most important. Low cost. ETFs are one of the best ways to invest in a diversified portfolio and to do so at a low cost. Sometimes it may cost you just a few dollars for every $10,000 you have invested. No trading commissions at online brokers. Nearly all major online brokers do not charge any commissions for trading ETFs. Priced throughout the day. ETFs are priced and exchanged throughout the trading day, giving investors flexibility to act as news arises. Passively managed. ETFs are usually (but not always) passively managed, meaning they simply follow a preselected index of stocks or bonds. Research shows that passive investing tends to beat active investing most of the time, and it's also a cheaper approach, so the fund company passes much of those savings to investors. Diversification. An ETF typically allows you to buy dozens of assets in one fund, meaning you get diversification (and lower risk) than if you bought just one or two stocks. Focused investments. ETFs are usually focused on a specific niche, such as investing style, industry, company size or country. So, you can buy an investment focused on a specific area such as biotechnology, if you think it's poised to go up. Large investment choice. With thousands of ETFs available, you have a lot of options to potentially invest in. Tax-efficient. ETFs are structured so that they minimize distributions of capital gains, helping you keep your tax bill lower. Potentially overvalued. Because they trade throughout the day, ETFs may potentially become overvalued relative to their holdings. So it's possible that investors can pay more for an ETF than the fund's net asset value. This is a rare situation, and the difference is usually pretty small, but it can happen. Not as targeted as advertised. While ETFs target specific investment themes, they're not as targeted as they're made out to be. For example, an ETF that gives exposure to Spain may own a big Spanish telecom company that earns a significant portion of its sales from outside the country. An ETF can be much less focused on a given target than its name may lead you to believe, so it's important to check what it actually holds. ETFs are like mutual funds in many respects. They both provide investors with a collection of assets that can offer the benefits of diversification, focused exposure to specific target investing areas, a large investment choice and potentially low costs. But mutual funds differ in a few other respects from ETFs: Mutual funds are often actively managed. Unlike ETFs, which are mostly passively managed, mutual funds are often actively managed (but not always). This means that the fund's managers may try to beat the market averages — and sometimes succeed. So you may see some outperformance if you can select a good investment manager. Mutual funds may have higher fees. In general, mutual funds charge higher fees than ETFs. Those include a higher expense ratio as well as the potential for huge sales commissions when you buy a fund, though the best mutual funds don't charge them. Mutual funds may have trading commissions. Some brokers charge commissions when you buy or sell a mutual fund, whereas ETFs typically have no commission. Mutual funds may have capital gains distributions. Mutual funds are forced to distribute capital gains toward the end of the year, a move that can increase your tax bill even if you didn't sell the fund. Mutual funds may have minimum initial investments. Sometimes mutual funds require you to put up several thousand dollars when you're first buying the fund. Mutual funds are priced and trade only after the market is closed. All trading in mutual funds happens at the fund's net asset value, which is calculated at the end of each day. Only then do shares trade hands. That's in sharp contrast to ETFs, which trade throughout the day, and may fluctuate above and below their net asset value. Those are some of the key distinctions between mutual funds and ETFs, but Bankrate also takes an even deeper look at these two popular investments. ETFs are often composed of stocks or bonds, and a single ETF may have dozens, even hundreds, of stocks among its holdings. The ETF's value is based on the weighted average of those holdings, while the stock price represents the market's valuation of the company. Here are some key differences between stocks and ETFs: Individual stocks are more volatile. An individual stock by nature is more volatile than a collection of stocks. It's not unusual for a stock to move up or down 50 percent in a given year, while that would be uncommon for an ETF. Individual stocks are riskier. An individual stock is riskier than an ETF, where the value relies on dozens of companies or more. With an individual stock, many things specific to that company could drive the value down (or up). Individual stocks require more work to invest in them. Investing in an ETF requires less work than investing in individual stocks. Each individual company has its own issues and concerns that need to be analyzed, requiring time and effort. Individual stocks don't charge an expense ratio. In contrast, an ETF charges an ongoing expense ratio, with a fee as a percentage of your invested assets. Those are a few key differences between stocks and ETFs and what they mean for investors. ETFs are generally designed to be a passive investment. They usually track a specific index of stocks such as the S&P 500, allowing you to invest in the index passively and at low cost. The point of passive investing is to replicate the returns of the index, which in the case of the S&P 500 has averaged about 10 percent annually over long periods of time. In contrast, active investing is about actively managing a portfolio, identifying the stocks that are likely to go up and investing in them. And this approach is more typical of mutual funds, which pay portfolio managers and analysts to make winning picks and beat the market averages. As an investor in this kind of fund, you're hiring a manager to do the investing work for you. In either case – and given the subpar record of most active investing – it makes little sense to actively trade ETFs (or mutual funds). How do I invest in an ETF directly? In general, ETFs need to be purchased through a broker and cannot be purchased directly from the fund company the way mutual funds can. How much should a beginner invest in ETFs? The right amount to invest can vary depending on your unique circumstances. In general, people saving for retirement tend to have more money allocated to stocks early in their careers and shift toward more fixed-income investments as they get closer to retirement age. The more money you're able to invest at a young age, the better off you'll be because it has more time to compound and grow. What is the 30-day rule on ETFs? The 30-day rule on ETFs comes into play when you're selling an ETF or other asset at a loss and want to claim the loss on your taxes. A wash sale is when you sell an asset, such as a stock or bond, for a loss but have purchased the same asset or a very similar one within 30 days before or after the sale. If you purchase the same asset or similar one within 30 days of your sale, you aren't able to claim the loss on your taxes. So, be sure to wait 30 days after selling an ETF for tax-loss harvesting purposes before buying it again. It's surprisingly easy to invest in ETFs, and you can do so just as you would purchase a stock. Plus, major online brokers have slashed trading commissions on these investments to zero. With all the benefits of ETFs, it's little surprise that they've become popular, and they look likely to become even more popular in the future. — Bankrate's Brian Baker contributed to an update of this story. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. Sign in to access your portfolio
Los Angeles Times
28-05-2025
- Business
- Los Angeles Times
Wall Street drifts lower as US stocks slow their roll
NEW YORK — U.S. stocks drifted lower on Wednesday, cooling down a day after leaping within a few good days' worth of gains from their all-time high. The Standard & Poor's 500 fell 0.6%, but it's still within 4.2% of its record after charging higher amid hopes that the worst of the turmoil caused by President Trump's trade war may have passed. It had been roughly 20% below the mark last month. The Dow Jones Industrial Average dipped 244 points, or 0.6%, and the Nasdaq composite slipped 0.5%. Trading was relatively quiet in the countdown to Wednesday's main event for financial markets, the latest quarterly earnings release for Nvidia. That came after trading ended for the day. Before that, the AI darling's stock slipped 0.5%. Expectations were high for the bellwether of the frenzy around artificial-intelligence technology. So are worries that its stock price may have run too high, even after it has largely stalled this year. Like Nvidia, Macy's stock also swung up and down through much of the day, even though it reported milder drops in revenue and profit for the latest quarter than analysts expected. The retailer maintained its forecast for revenue this year, but it cut its profit forecast in part because of tariffs and some moderation of spending by consumers. Its stock ended the day down 0.3%. Several other retailers likewise delivered better-than-expected results for the latest quarter. Abercrombie & Fitch soared 14.7% after its profit and revenue topped analysts' expectations. CEO Fran Horowitz credited broad-based growth across its business around the world, and strength for its Hollister brand offset weakness for its Abercrombie brand. Dick's Sporting Goods added 1.7% after topping analysts' expectations for the latest quarter, and it stood by its financial forecasts it earlier gave for the full year. On the losing end of Wall Street was Okta, which fell 16.2% even though the identity and access management company reported better results for the latest quarter than Wall Street expected. Analysts called it a solid performance, but investors may have been looking for even more after its stock came into the day up nearly 60% for the year so far. Video-game retailer GameStop fell 10.9% after saying it had bought 4,710 bitcoin, which is worth more than $500 million at its current price. The company said in late March that it could begin buying bitcoin to store some of the cash in its treasury. All told, the S&P 500 fell 32.99 points to 5,888.55. The Dow Jones Industrial Average dropped 244.95 to 42,098.70, and the Nasdaq composite fell 98.23 to 19,100.94. In the bond market, the yield on the 10-year Treasury rose to 4.47% from 4.43% late Tuesday. The bond market showed relatively little reaction after the Federal Reserve released the minutes from its latest meeting earlier this month, when it left its benchmark lending rate alone for the third straight time. The central bank has been holding off on cuts to interest rates, which would give the economy a boost, amid worries about inflation staying higher than hoped because of Trump's sweeping tariffs. Sharp swings in Treasury yields last week rattled markets worldwide, as they rose in part on worries about the U.S. government's rapidly rising debt levels. Such swings have also hit Japan, where an auction of 40-year Japanese government bonds on Wednesday drew less interest from potential buyers than it's seen since July. After years of pumping money into the economy by buying loads of Japanese government bonds, Japan's central bank has been gradually cutting back, undermining demand at a time when other institutional investors also have been buying fewer Japanese government bonds. Fewer buyers for bonds pushes up their yields. In stock markets abroad, indexes were modestly lower across much of Europe and Asia. South Korea was an exception, where the Kospi jumped 1.3% thanks in part to gains for Samsung Electronics and other tech companies. Choe writes for the Associated Press.
