Across markets, familiar trading patterns for stocks, bonds and commodities that have held for months are starting to unravel as financial markets grapple with expectations that the U.S. economy will slide into a recession next year, market analysts told MarketWatch.
For most of this year, falling Treasury yields coincided with higher equity valuations as borrowing costs became a critical concern for markets. So far this week, the S&P 500 has fallen 2.8% after staging a torrid rally that began in mid-October. Sharp but short-lived rallies aren’t uncommon during bear markets, said Steve Sosnick, chief investment strategist at Interactive Brokers.
“Expectations for a recession are firming up and rightly so. We’re starting to see it get priced into markets, which isn’t that surprising after the rally we’ve had over the last month,” said Jake Jolly, senior investment strategist at BNY Mellon Investment Management.
are you redefining recession ? 6% down from the top and 8% inflation? it may be a correction but a recession ? with $30 per hour jobs delivering pizzas, before tip ? crypto losers will have to make a bigger effort to scare the market...
I thought there’s a pivot. Wasn’t everyone pushing a pivot? What happened? Oh, funds exited their longs after touting a pivot and are now in position for a recession?
Boring