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Cramer: Stocks at Mercy of Bond Market, Can't Rally Until Yields Drop

  • Jim Cramer says the stock market is at the mercy of the bond market right now. Stocks can't soar until bond prices go up and yields come down.

  • Cramer believes the stock market sell-off is overdone, but as long as rates keep rising, stocks will keep falling.

  • Bonds are in charge and not allowing stocks to rally, only fall, due to the inverse relationship between bonds and stocks.

  • Cramer uses McCormick as an example of a stock hurt by the market conditions despite decent earnings.

  • Cramer believes stocks that used to be rewarded for consistent growth are being punished now due to the action in the bond market.

cnbc.com
Relevant topic timeline:
The stock market is being negatively impacted by intense competition and a real yield problem.
Stocks are facing a "real" yield problem as investors become more focused on rising real yields, which could result in lower stock prices and a hit to the P/E multiple.
The stock market is rising despite bad news, as interest rates lower and stabilizing rates are seen as positive signs.
Stock investors are optimistic and focused on the potential positives, while bond investors are more concerned about potential negatives; however, when the stock and bond markets differ, the bond market is typically more accurate in predicting the state of the economy according to Interactive Brokers Chief Strategist Steve Sosnick.
Stocks are giving back their gains as bond yields rise due to fears that the Federal Reserve will keep interest rates high for a longer period of time.
The stock market experienced a sharp decline as early gains turned into a selloff, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all falling; concerns over rising bond yields and inflation contributed to the sell-off.
Stocks rise as markets shift focus from the Federal Reserve to corporate and economic reports, with the S&P 500 and Dow Jones Industrial Average both experiencing gains, while investors await upcoming economic data and inflation updates.
Higher interest rates are impacting corporate profits, but stock prices remain steady for now.
Rising bond yields and interest rates are a concern for CNBC's Jim Cramer, who believes that the market will struggle to advance if rates continue to climb.
The stock market is expected to reach new highs by the end of the year, as a leading bond market indicator signals a bullish trend, according to Bank of America.
The stock market is currently stagnant and the key question is when the Federal Reserve will start cutting interest rates, as the market struggles when the Fed tightens monetary policy.
Stocks mostly lower as investors await Federal Reserve's interest rate decision and assess new economic data showing easing core inflation and a cooling labor market, with expectations high for the Fed to hold rates steady.
Treasury yields rise and stocks fall as traders anticipate longer-lasting higher rates to prevent inflation, while Brent oil briefly surpasses $95 a barrel; the Federal Reserve's decision on interest rates is eagerly awaited by investors.
Stocks tumbled after the Federal Reserve announced that interest rates will remain higher for longer; however, some analysts believe that the market's reaction was overblown and that higher rates and economic growth could actually lead to higher stock valuations.
Stocks may not be as negatively impacted by higher interest rates as some fear, as the Federal Reserve's forecast of sustained economic growth justifies the higher rates and could lead to increased stock valuations.
The stock market experienced a correction as Treasury yields increased, causing major indexes to break key support levels and leading stocks to suffer damage, while only a few stocks held up relatively well; however, it is currently not a favorable time for new purchases in the market.
Treasury yields are expected to rise in the future, which could have a negative impact on the stock market.
The recent decline in the stock market is overshadowed by the more significant drop in US and foreign bond markets, indicating a fundamental shift in perception and a signal of higher interest rates globally.
Michael Santoli, senior markets commentator at CNBC, discusses the outlook for the fixed income market, the state of the economy, and the stock market. He notes that the bond market is starting to register the Federal Reserve's plans to keep rates higher for longer, and that real yields are increasing due to higher inflation expectations and concerns over the size of current federal deficits and Treasury issuance. Santoli also suggests that it is still too early to fully understand the impact of artificial intelligence on productivity gains, and that the recent uptick in headline inflation is not expected to change the Federal Reserve's stance. He also notes that the stock market has been range-bound and indecisive, with some pockets of weakness in consumer cyclicals, but that the market is still pricing in somewhat benign economic conditions. Santoli highlights the concentration of the market in a few mega-cap growth stocks and the undervaluation of small-cap stocks, and discusses the outlook for the 60/40 portfolio in light of higher bond yields.
CNBC's Jim Cramer advises investors to view recent stock market weakness as an opportunity to buy, despite the competition from U.S. government bonds, as he believes interest rates will eventually top out after the Federal Reserve tames inflation.
The global markets, including U.S. and Asian markets, are caught in a cycle of rising bond yields, a strong dollar, higher oil prices, and decreasing risk appetite, leading to fragile equity markets and deepening growth fears.
The recent surge in bond yields, with 10-year Treasury yields hitting levels not seen in over 15 years, is impacting the stock market as investors shift their focus to safer bond investments, which offer higher yields and less volatility than stocks.
U.S. stocks and bonds are falling due to another surge in Treasury yields, leading to anxiety among investors who fear that the Fed will hold interest rates higher for longer if the labor market remains strong.
Stocks are essentially long-term bonds with a variable coupon, and the bond nature of stocks will result in the S&P 500 returning to last year's lows following new lows in the price of long-term bonds.
Stocks on Wall Street are drifting as higher interest rates continue to impact the market, with the S&P 500 remaining largely unchanged and the Dow Jones down slightly, as investors grapple with the prospect of high inflation and the Federal Reserve's efforts to lower it.
The U.S. stock market is currently trading at an attractive discount, with growth stocks moving from underweight to market weight and the real estate sector overtaking communication services as the most undervalued sector.
Stocks slumped as the bond rout continues and one Fed policymaker predicted another interest rate hike this year, with the Nasdaq falling 0.5% and the S&P 500 and Dow Jones Industrial Average losing 0.4%.
The stock market sinks as Wall Street focuses on the downside of a strong job market, with rising Treasury yields putting pressure on stocks and making borrowing more expensive for companies and households.
Stocks plummeted as investors were spooked by the 10-year Treasury yield reaching its highest level since 2007, with markets concerned about a tight labor market and the possibility of rising yields continuing to put pressure on stocks.
The U.S. stock market may not deserve to fall due to higher interest rates alone, as the belief that stock prices decline when interest rates rise can lead to erroneous assumptions, and the correlation between interest rates and inflation is crucial in determining stock market behavior.
Surging Treasury yields are weighing on stocks and financial markets, and the only way to relieve the pain for bond investors may be a decline in stocks.
The "greatest bond bear market of all time" is occurring as the fixed-income market faces a significant decline in the U.S. 30-year yield, leading to outflows from bond funds and a rise in Treasury yields.
The stock market is currently experiencing the most significant U.S. Treasury bond bear market in history, while JPMorgan's Chief Market Strategist predicts potential turbulence and a recession on the horizon; meanwhile, stocks opened lower on Friday morning after the September non-farm payrolls data, and U.S. futures are shaky as traders await the release of the Non-Farm Payrolls report, with experts predicting lower job additions and a potential fall in the unemployment rate.
The rise in Treasury bond yields above 5% could lead to a more sustainable increase and potential havoc in financial markets, as investors demand greater compensation for risk and corporate credit spreads widen, making government debt a more attractive option and leaving the stock market vulnerable to declines; despite this, stock investors appeared unfazed by the September jobs report and all three major stock indexes were higher by the end of trading.
Stock markets are wavering as investors anticipate another rate hike by the US Federal Reserve, fearing its impact on the global economy, however, recent inflation data suggests that inflation is declining and consumer spending is rising.
Stocks are defying factors that would normally cause them to fall, such as war in the Middle East and economic uncertainty, due to a decrease in bond yields and investors seeking safety in Treasuries.
U.S. stocks are drifting lower and bond yields are rising following mixed economic reports, which provide no clear indication of future interest rate changes.
Stocks plummeted as Treasury yields rose, consumer prices increased, and a disappointing bond auction caused a decline in the broader stock market.
Stocks rise as investors digest earnings from big banks and focus on the outlook for interest rates and bond yields; oil prices continue to climb due to tensions in the Middle East.
U.S. stocks are set to end higher as investors shift their focus to the upcoming third quarter earnings season, while bond prices decline; cryptocurrencies gain attention with bitcoin rising, and major companies like Goldman Sachs, Johnson & Johnson, Netflix, and Tesla prepare to release their quarterly results.
Stocks rise and bond prices decline as markets focus on corporate earnings and the strength of the U.S. economy, rather than Middle East tensions, signaling a reversal of last week's risk-off sentiment.
Treasury yields rise and stock struggle as positive economic reports support the argument for the Federal Reserve to maintain higher interest rates for a longer period of time.
Despite positive economic news, the stock market experienced a decline due to the realization that interest rates are likely to remain high, resulting in a decrease in stock valuations; however, the market is expected to rebound in the long term due to strong earnings growth and a solid economic foundation.