‘Something’s Got To Give’: Equities and Fixed-Income Markets Present Polar Opposite Outlooks on the US Economy, Says Goldman Sachs Trader
Investors in the equities and fixed-income markets appear to have polar opposite outlooks on the US economy, according to one Goldman Sachs managing director.
Shawn Tuteja, who oversees exchange-traded fund (ETF) and custom baskets volatility trading in Goldman’s Global Banking & Markets division, notes in a new analysis that there are “growing fears” the US economy is headed for a slowdown.
Tuteja says the significant drop in bond yields suggests fixed-income investors expect numerous additional rate cuts from the U.S. Federal Reserve.
“For equities, it’s a different story. The S&P 500 continues to hit record highs. And in fact, it’s the most economically sensitive, low-quality and most speculative names that have led the last leg higher. In other words, equity investors think we’re going to thread the needle; that the Federal Reserve is going to continue to cut interest rates into an economy that is not only stronger than recent jobs data might suggest, but that actually might reaccelerate into 2026 due to fiscal stimulus from the government.
The fixed-income market is much more worried about a potential collapse in the employment data. So something’s got to give. Going forward, economic data releases will be really important, and markets could be extremely reactive to them, since each print helps shed light as to whether the equity market or the fixed income market is on the right side of this disconnect.”
Generated Image: DALLE-3
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin News Update: DeFi Faces Liquidity Challenges Amid Bitcoin Falling Under $100K
- Bitcoin's drop below $100K triggered DeFi liquidity crises, with $650M in leveraged positions liquidated as automated stop-losses activated. - Wrapped Bitcoin (WBTC) integrated with Hedera blockchain to reduce MEV and frontrunning, aiming to inject liquidity into DeFi protocols. - Hyperion DeFi reported 60% MoM validator growth and new partnerships, emphasizing staking yields over leveraged positions to avoid market volatility. - Analysts like Tom Lee predict 6-8 weeks for recovery, contingent on stabili
Assessing How Recent Ecosystem Enhancements Influence Trust Wallet Token (TWT) Price Forecasts
- Trust Wallet's Q4 2025 upgrades expanded TWT's utility through FlexGas (gas fee payments) and Trust Premium loyalty incentives, transforming it from governance to transactional token. - TWT surged 129% to $1.6 by October 2025, fueled by Binance CZ's endorsement and institutional validation of its ecosystem-driven value proposition. - The token's growth aligns with multi-token economy trends, emphasizing cross-utility, stability, and transparency through fixed supply models and public audits. - While regu
Astar (ASTR) Price Rally: Cross-Chain Compatibility Fuels Altcoin Value Growth
- Astar (ASTR) surged in late 2025 due to strategic blockchain interoperability advancements and partnerships. - Collaboration with HTX includes TGE Catalyst Grants, listing acceleration, and CEX partnerships to boost DeFi adoption. - Astar 2.0's zkEVM and CCIP integration achieved 150,000 TPS, targeting 300,000 TPS by 2025 with enterprise partnerships. - Interoperability-driven projects like Astar are reshaping altcoin valuations, aligning with growing institutional DeFi demand.
Astar 2.0 Debut and Its Impact on the Blockchain Landscape
- Astar 2.0 emerges as a strong contender in institutional blockchain adoption through Polkadot-based scalability and interoperability innovations. - Institutional confidence grows with $3.16M ASTR purchase, 20% QoQ wallet growth, and partnerships with Sony , Casio, and Japan Airlines. - Astar's 6-second block time, 150k TPS throughput, and Chainlink CCIP integration contrast with Bitcoin/Ethereum's scalability struggles and ETF outflows. - Projected $0.80–$1.20 ASTR price by 2030 hinges on Evolution Phase
Trending news
MoreCrypto prices
More
