Stocks Stumble as Rising Rates Sting Bonds, Tech; Energy Shines on Tight Oil Supply
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Bond yields spiked as investors sold bonds amid concerns about growing deficits, higher interest rates, and rising defense spending. Long-term Treasury bonds suffered some of the biggest quarterly drops in history.
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High inflation and rising rates have led to plunging valuations and bankruptcies for some overhyped, money-losing companies that went public in recent years.
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New weight loss drugs like GLP-1 agonists are being hailed as breakthroughs, but face uncertainties around side effects and high costs. Their impact on food demand remains unclear.
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Energy was the best performing S&P 500 sector as oil prices rose on tight supply from OPEC+ production cuts. Geopolitical tensions raise concerns about global oil market stability.
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Insurers are benefiting from a hard pricing market with double-digit rate increases across many lines of coverage. Higher interest rates also boost returns.