Posted 10/19/2023, 11:09:30 PM
Rising Rates and Strong Dollar Weigh on Markets as Fed Policy Shifts
- Rising Treasury yields tightening financial conditions, curbing investors' appetite for stocks and other risky assets
- Mortgage rates at multi-decade highs weighing on housing market - existing home sales dropped to 13-year low
- Stronger dollar compounds efforts of other central banks to tamp down inflation by pushing down currencies
- Corporate credit spreads widening as yields surge, adding to funding costs for borrowers
- Increased volatility in stocks and bonds as expectations shift for Fed policy and deficit spending
