US stocks recover from early losses but end the week with sharp drops as the August slump continues, while investors consider the possibility of higher interest rates and concerns over China's economic troubles.
This article does not mention any specific stocks. The author's advice is to rotate out of historically overvalued financial assets and into historically undervalued critical resources. The author's core argument is that there is a high probability of a recession in the next twelve months, and they believe that the Fed's policies will contribute to this recession. The author also highlights potential risks in the junk bond market, the private equity industry, and the banking sector.
Stock futures rise as investors close out a month of losses for the three major stock indexes, with positive earnings reports from MongoDB and Dell Technologies boosting sentiment.
The 10-year Treasury bond is poised for its third consecutive year of losses in 2023, a historical first, as bond returns have suffered due to the Federal Reserve's efforts to control inflation and the lower returns on stocks and bonds expected in the coming decade.
U.S. stock futures decline as bond yields rise despite weak economic news from China and Europe.
US stocks are experiencing their worst performance in September since 1928, but there are signs that the market could avoid a steep downturn this year, with indicators suggesting more stability and positive gains for the rest of the year, according to Mark Hackett, chief of research at US investment firm Nationwide. However, challenges such as elevated oil prices and inflation could put strain on the stock market and the US economy.
The Federal Reserve has surpassed $100 billion in losses, and experts predict that the losses could potentially double before they start to decrease, as the central bank continues to pay out more in interest costs than it earns from bonds and financial sector services.
U.S. stocks were lower on Tuesday as oil prices and bond yields rose ahead of the Federal Reserve's interest rate decision, with investors watching for guidance on future rate hikes and inflation threats.
U.S. stocks fell and Treasury yields surged ahead of the Federal Reserve's interest rate decision, while Instacart shares surged 12% on their first day of trading on the Nasdaq.
US stock futures rise as investors await Fed decision on rates; US debt rises to $33 trillion as government shutdown looms; Federal Reserve expected to pause rate hikes; Impact of government shutdown, autoworkers strike, and rising oil prices on the economy; Biden reshapes the Federal Reserve.
US stocks slumped as investors prepare for the Federal Reserve's upcoming interest rate decision, with all three benchmark indexes ending the day lower.
US stocks are slightly higher on Friday but are on track for a losing week due to a spike in bond yields and surging oil prices.
U.S. equity markets experienced their worst week since March as benchmark interest rates surged, causing concerns about tight monetary policy, a potential government shutdown, and trade tensions with China, resulting in losses for real estate equities and mortgage rates reaching their highest level since 2002.
The recent decline in the US equity market is validating concerns about its lopsided nature, with a small number of top-performing stocks leading the market lower and the remaining companies struggling to make gains, potentially exacerbating losses in a rising Treasury yield environment.
Stock futures decline and Treasury yields rise as Wall Street believes the Federal Reserve will keep interest rates higher for longer.
Stock futures are falling as oil prices surge and the yield on the 10-year Treasury remains near levels last seen in 2007.
The two-month selloff in US stocks is expected to worsen as options dealers and fast-money traders both turn against the market, according to Goldman Sachs.
Apple stock is on track for its worst month of 2023, with the launch of the iPhone 15 being a contributing factor.
U.S. stocks mostly fell as investors considered the latest inflation data from the Federal Reserve, marking the end of a turbulent month for the market.
Stock markets are experiencing their worst month of the year, as the Federal Reserve confirms its commitment to keeping interest rates higher for a longer period, leading to concerns about the Fed's hawkish stance continuing to weigh on 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.
Stock futures are falling as equities face pressure from rising bond yields on October 3, 2023.
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 sell-off in Treasury bonds with maturities of 10 years or more, which has caused yields to soar, is surpassing some of the most severe market downturns in history, with losses of 46% and 53% since March 2020, comparable to stock-market losses during the dot-com bubble burst and the 2008 financial crisis.
Stocks are expected to end the year "significantly higher" despite recent losses, as surging bond yields are not sustainable and are disconnected from the fundamentals, according to Fundstrat's Tom Lee.
Despite the ongoing bear market in Treasury bonds, certain sectors of the fixed-income market, such as bank loans, short-term junk bonds, and floating-rate notes, are performing well in 2023, offering some protection from the losses in long-term Treasuries, which have slumped 46% since March 2020. The future performance of long-dated bonds depends on the Federal Reserve's monetary policy and the resilience of the economy.
Verizon's stock fell as interest rates continue to rise, impacting its $182 billion debt and competition from high-yield options for investors. The company's future stock performance may be tied to its operational performance and cash flow rather than bond yields.
The collapse in Treasury bonds is one of the worst market crashes in history, with experts predicting that a recession could hit in 2024 and 10-year Treasury yields could breach 5.5%.
The US stock market experienced losses in the third quarter, driven by rising US Treasury yields, leading to a surge in the US dollar and a hostile environment for gold and silver; the fourth quarter may see a continuation of this trend if US yields continue to rise.
US bonds are undergoing their worst-ever rout, with yields spiking and investors concerned about the Federal Reserve's fight against inflation, making it the deepest bond bear market in the history of the US, according to Bank of America.
Treasury debt losses over the past three years have resulted in the worst bear market for the U.S. in its nearly 250-year history, with long-duration Treasury yields reaching their highest levels in over 16 years, putting pressure on U.S. stocks.
U.S. Treasury yields fell as investors turned to safer investments amid concerns over the Israel-Hamas war and hints from Federal Reserve officials that there may not be a need for further rate hikes.
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.
The U.S. stock market is currently trading at a discount to fair value, and Morningstar expects rates to come down faster due to optimism on inflation; strong growth is projected in Q3, but the economy may slow down in Q4, and inflation is expected to fall in 2023 and reach the Fed's 2% target in 2024. The report also provides outlooks for various sectors, including technology, energy, and utilities, and highlights some top stock picks. The fixed-income outlook suggests that while interest rates may rise in the short term, rates are expected to come down over time, making it a good time for longer-term fixed-income investments. The corporate bond market has outperformed this year, and although bankruptcies and downgrades may increase, investors are still being adequately compensated for the risks.
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.
US stocks fall as fears of war in the Middle East and hopes for stronger profits at big US companies collide in financial markets; oil prices rise and Treasury yields fall, creating uncertainty in the market.
UBS advises investors to focus on bonds rather than stocks, predicting that the 10-year US Treasury yield will drop to 3.5% by mid-2024 due to slowing growth and the Federal Reserve's easing of policy, offering bondholders returns of around 13%.
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.
U.S. stock investors are facing challenges as the benchmark 10-year Treasury yield approaches 5%, a level that makes government debt more appealing than stocks and hinders economic activity, causing equities to lose value.
The surge in bond yields is causing losses for investment funds and banks, pushing up borrowing costs globally and impacting stock markets, while the dollar remains stagnant and currency traders predict a recession on the horizon.
US corporate debt markets are showing signs of weakness as yields rise and equities fall, with risk premiums for investment-grade bonds at their highest levels since June and yields on junk bonds at their highest in a year.