Why is the stock market down? Falling bond yields point to ‘growth scare’

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Investors appear to swap fears of surging U.S. inflation for worries about stalling growth. That makes sense, but don't take it too far, says one Wall Street...

Have investors swapped fears of surging inflation for worries about stalling global economic growth? Perhaps, but there’s still a lot of optimism about prospects for corporate earnings and the economy in the months ahead.

A debate has raged among investors and analysts over the explanation for the fall in Treasury yields, which seem to be driving moves across financial markets. But take them all together, and they point to a general sense of unease about what will power a stock market that’s hit a string of record highs amid what many expect to be peak economic growth.

Before Thursday’s selloff, which saw large-cap growth stocks get clobbered alongside more cyclically oriented stocks, the worries had appeared largely invisible to the S&P 500 index because of its high-quality growth/big tech overweight, Colas said. But they were apparent when looking at other phenomenon that have taken place since June 1, including a higher U.S. dollar, a fall of more than 4% for the MSCI Emerging Markets index EEM, -1.96%, and a 0.

 

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A year after the pandemic? How much wealth does the wealthiest need to profit after records profits while all the ma and pa businesses was closed ! How many miracles or pandemic do they need ?

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