![]() ![]() The 10-year yield jumped to 3.29 percent from 3.15 percent, and the higher level will make mortgages and many other kinds of loans for households and for businesses more expensive. It’s more than quadrupled this year and touched its highest level since 2008. The two-year Treasury yield shot to 3.23 percent from 3.06 percent late Friday, its second straight major move higher. bond yields to their highest levels in years. It’s all a whiplash turnaround from earlier in the pandemic, when central banks worldwide slashed rates to record lows and made other moves that propped up prices for stocks and other investments in hopes of juicing the economy. WATCH: Markets plunge amid fears of sharply higher interest rates Those would come on top of some already discouraging signals about the economy and corporate profits, including a record-low preliminary reading on consumer sentiment that was soured by high gasoline prices. #BEAR MARKET SERIES#No one thinks the Fed will stop there, with markets bracing for a continued series of bigger-than-usual hikes. Traders now see a 30 percent probability of such a mega-hike, up from just 3 percent a week ago, according to CME Group. That’s triple the usual amount and something the Fed hasn’t done since 1994. Some traders are even speculating the Fed on Wednesday may raise its key short-term interest rate by three-quarters of a percentage point. Its main method is to raise interest rates in order to slow the economy, a blunt tool that risks a recession if used too aggressively. The center of Wall Street’s focus was again on the Federal Reserve, which is scrambling to get inflation under control. Eastern time, and the Nasdaq composite was 3.9 percent lower. ![]() The Dow Jones Industrial Average was down 738 points, or 2.4 percent, at 30,653, as of 10:30 a.m. The S&P 500 was 3.3 percent lower in investors’ first chance for trading after getting the weekend to reflect on the stunning news that inflation is getting worse, not better. Here are some common questions asked about bear markets.NEW YORK (AP) - Wall Street is tumbling even more Monday, sending the S&P 500 down more than 20 percent from its record, on worsening fears about a possible recession given how stubborn inflation has become. Now, the familiar rallying cry to “buy the dip” after every market wobble is giving way to fear that the dip is turning into a crater. For years, thanks in large part to extraordinary actions by the Federal Reserve, stocks often seemed to go in only one direction: up. The last bear market happened just two years ago, but this would still be a first for those investors that got their start trading on their phones during the pandemic. Big swings such as the one seen Friday have been commonplace. Rising interest rates, high inflation, the war in Ukraine, and a slowdown in China’s economy have caused investors to reconsider the prices they’re willing to pay for a wide range of stocks, from high-flying tech companies to traditional automakers. The prevailing sentiment among investors remains negative, however, so the relief may be temporary. The stock market’s slump this year briefly pulled the S&P 500 into what’s known as a bear market Friday, before a late rally put the index in the green. ![]() NEW YORK - The bear came close to Wall Street but then backed off. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |