The S&P 500 Is on Track for Its Worst January Ever. Here's Why Stocks Are Getting Hit So Hard

What's behind the sell-off?

The central bank has signaled that it plans to stop its asset purchases, hike rates and possibly reduce its balance sheet, starting in March. Government bond yields have surged in preparation for the rate increases, with the U.S. 10-year Treasury rising more than 40 basis points this year alone to nearly 1.9% at its high point after finishing last year just above 1.5%.

The Fed will give its latest update on Wednesday. While it's unlikely to raise rates at this meeting, market experts believe thegiven the high level of inflation. Climbing bond rates typically disproportionally punish growth stocks as their future earnings growth become less attractive as rates rise. The growth expectations for tech stocks have also weakened as Wall Street analysts have gotten a better sense of what the post-pandemic economy may look like.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Monday's worst-performing stocks in the S&P 500 are down as much as 42% for 2022Today's big losers in the stock market include Moderna, Netflix, Nvidia and Tesla. $MRNA $NFLX $NVDA $TSLA
Source: MarketWatch - 🏆 3. / 97 Read more »

Stocks close out worst week since March 2020Stocks fell again on Wall Street Friday, capping off the worst weekly drop for the S&P 500 since the start of the pandemic Let's go Brandon
Source: latimes - 🏆 11. / 82 Read more »