Stocks Get Hit as Economic Jitters Spur Bond Rally: Markets Wrap

MT HANNACH
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(Bloomberg) – Actions have been affected and the obligations have increased as another disappointing reading on the American consumer has fueled the health of the world’s greatest economy.

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Another large drop in the Nasdaq 100 pushed its loss of four days to around 5%, most of them since the beginning of September, while a megacaps gauge has slipped into the correction territory. The sale was the heaviest in the speculative corners of the market, with a slide of 7.5% in Bitcoin stimulating a dive in funds negotiated in exchange specialized in crypto. A treasure rally led yields to 10 years at their lowest levels in 2025.

Consumer confidence in the United States has dropped the most since August 2021 on concerns about the prospects of the economy in general. The data followed recent disappointments on retail, services and housing fronts. This has prompted traders to increase their bets on federal reserve rate drops this year, even if inflation pressure seems to intensify.

“The market always seems more worried about growth than in inflation,” said Chris Verrone at Strategas.

The S&P 500 lost 0.4%. The Nasdaq 100 slipped 0.9%. The industrial average of Dow Jones increased by 0.3%. A MAGNIFICENT SEVEN megacaps gauge has flowed 2%. On the eve of the results of Nvidia Corp., the shares lost up to 4.5%, before making losses. Apple Inc. Rose.

The yield on treasury bills at 10 years has flowed nine base points at 4.31%. Monetary markets are now entirely prices in more than two quarter -point discounts by the Fed in 2025. The dollar lost 0.1%.

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“Consumers are increasingly nervous about the unknown impacts of potential prices and could advance consumer demand because they provide higher prices for imports in the near future,” said Jeff Roach at LPL Financial.

A note of caution, says Roach, consumer surveys are much more volatile than difficult retail data. This means that the Fed will probably not change its position on monetary policy during the next meetings, according to The Economist.

The expectations of inflation in the coming year have increased to the highest since May 2023. FED officials, including President Jerome Powell, said they maintain stable interest rates until What progress on inflation is achieved.

“Consumer confidence continues to get out of its sugar supplied in election from November,” Bret Kenwell told Etoro. “Economic uncertainty remains high, whether around prices or data more focused on the United States such as inflation or retail sales.”

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