Debt/Bond Markets

The S&P 500 sank 5% in a very bad week for stocks. These 20 lost as much as 24%.

The S&P 500 sank 5% in a very bad week for stocks. These 20 lost as much as 24%.

U.S. stocks sputtered Friday to close out the week in the red. The day’s declines of less than 1% for the broad indexes paled against Tuesday’s, when they sank 4% to 5%. For the week, the Dow Jones Industrial Average DJIA, -0.45% was down 1,329 points (or 4.1%), closing Friday at 30,822. The benchmark S&P …

The S&P 500 sank 5% in a very bad week for stocks. These 20 lost as much as 24%. Read More »

A punishing selloff in short-term debt is pushing one rate near the 'magic' level that 'frightens' markets

A punishing selloff in short-term debt is pushing one rate near the ‘magic’ level that ‘frightens’ markets

The yield on the 1-year Treasury note is testing 4%, a level that traders say could spill over into other rates and send shivers through financial markets, as the Federal Reserve presses forward in earnest with its campaign to shrink its $8.8 trillion balance sheet. That balance-sheet process, known as “quantitative tightening,” is intended to …

A punishing selloff in short-term debt is pushing one rate near the ‘magic’ level that ‘frightens’ markets Read More »

The next financial crisis may already be brewing --- but not where investors might expect

The next financial crisis may already be brewing — but not where investors might expect

A growing number of traders, academics, and bond-market gurus are worried that the $24 trillion market for U.S. Treasury debt could be headed for a crisis as the Federal Reserve kicks its “quantitative tightening” into high gear this month. With the Fed doubling the pace at which its bond holdings will “roll off” its balance …

The next financial crisis may already be brewing — but not where investors might expect Read More »

Meta is one of today's worst S&P 500 performers, but these 5 other stocks have lost $387 billion in value

These five stocks in the S&P 500 lost almost half a trillion dollars in value in one day amid widespread wipeout

A decline in gasoline prices couldn’t mask the problem that spooked investors on Sept. 13: Core consumer prices resumed their rapid increase during August. Fear of the Federal Reserve’s ongoing tightening of monetary policy to fight inflation sent the Dow Jones Industrial Average DJIA, -3.94% down 1,276 points (or 3.9%) to 31,104, with all 30 …

These five stocks in the S&P 500 lost almost half a trillion dollars in value in one day amid widespread wipeout Read More »

Meta is one of today's worst S&P 500 performers, but these 5 other stocks have lost $387 billion in value

Meta is one of today’s worst S&P 500 performers, but these 5 other stocks have lost $387 billion in value

A decline in gasoline prices couldn’t mask the problem that spooked investors on Sept. 13: Core consumer prices resumed their rapid increase during August. Fear of the Federal Reserve’s ongoing tightening of monetary policy to fight inflation sent the Dow Jones Industrial Average DJIA down 887 points (or 2.7%) to 31,494, with all 30 components …

Meta is one of today’s worst S&P 500 performers, but these 5 other stocks have lost $387 billion in value Read More »

First major Wall Street bank to call a U.S. recession says 'the pessimists will sadly prevail'

First major Wall Street bank to call a U.S. recession says ‘the pessimists will sadly prevail’

Deutsche Bank, which became the first major Wall Street bank to forecast a U.S. recession in April, is running through its list of pros and cons for why the world’s largest economy might achieve a soft landing — and coming to the conclusion that it won’t. “Our view is that the pessimists will sadly prevail …

First major Wall Street bank to call a U.S. recession says ‘the pessimists will sadly prevail’ Read More »

U.S. inflation slows again due to cheaper gas, CPI shows. Yet prices soar for almost everything else

U.S. inflation slows again due to cheaper gas, CPI shows. Yet prices soar for almost everything else

The numbers: Falling gasoline prices last month delivered a second low U.S. inflation reading in a row as the consumer price index rose by just 0.1% in August. But the report also shows inflation has spread more broadly through the economy and is set to spur the Federal Reserve to sharply raise interest rates again. …

U.S. inflation slows again due to cheaper gas, CPI shows. Yet prices soar for almost everything else Read More »

Will the Federal Reserve kill the stock-market bounce?

Bad news for stocks: Fed will be surprised how hard rate hikes hit economy, says BlackRock

Federal Reserve policy makers are about to surprise themselves — and not in a good way when it comes to stocks and other assets perceived as risky, according to analysts at BlackRock Investment Institute. BlackRock has argued that investors are dealing with a “regime shift” as the COVID-19 pandemic upended an unusual period of mild …

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‘The psychology has changed so quickly’: Why stock-market lows may be retested as S&P 500 enters its weakest stretch of year

‘The psychology has changed so quickly’: Why stock-market lows may be retested as S&P 500 enters its weakest stretch of year

With summer winding down, the U.S. stock market is set up for a potentially shaky fall.  “Recession fears are the most likely trigger of a retest of the June lows,” said Ed Clissold, chief U.S. strategist at Ned Davis Research, in an Aug. 31 note. “From a seasonality perspective, a retest could come in the …

‘The psychology has changed so quickly’: Why stock-market lows may be retested as S&P 500 enters its weakest stretch of year Read More »

Morgan Stanley warns this corner of the credit market could be first to implode as interest rates rise

Morgan Stanley warns this corner of the credit market could be first to implode as interest rates rise

Now that Federal Reserve Chairman Jerome Powell has made it abundantly clear that the Fed has no plans to slow the pace of interest-rate hikes, some bond-market experts are warning that the most speculative areas of the credit market might be in for a rude awakening. A team at Morgan Stanley MS, -1.08% warned that …

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