When bonds prices go up is that good for the market or bad for the market?

lets say that interest go up and bonds prices go down. how does that affect the markets? bonds' prices going up, what kind of effect will have that on the market? negative or postive? The fed just cut its target on the federal funds rate to 4.25, how is this affecting the equity and bond markets, specially the Fixed Income market (bonds, govt securuties, etc)?

Too opened ended. Usually, lower interest rates are good for the market b/c in theory it is a competing asset class, and lower rates makes that asset class less attractive. There are so many things going on now that that does not necessarily hold true. TB

The answer isn't that simple right now because you have a"credit crunch" and housing bubble collapse also affecting the stock markets.

Bond prices move at the inverse to the stock market.... generally. Low interest rates are generally good for the market. Companies can borrow money at reasonable prices to build business.

Right now there are many complex issues affecting the market that go beyond interest rates. Many foreign markets are much more profitable than the U.S. market.

Foreign markets are easy to invest in if you use the many ETFs now available... EWZ, EWS, EWM, etc.

Wishing you health and wealth...

Here's the general answer. Stocks and (US treasury) bonds typically go in opposite directions. Higher interest rates makes bonds more attractive and stocks less attractive. Also, if you recall from CAPM, if the risk free rate increases, that means investors need a higher return for their equity, other things being equal, and the stock price should decline to compensate for the higher returns.

When bond prices go up, it's generally (not always) a bad sign for the market.