Bond Market Volatility and its Impact on Stocks

  • 📰 globebusiness
  • ⏱ Reading Time:
  • 50 sec. here
  • 10 min. at publisher
  • 📊 Quality Score:
  • News: 51%
  • Publisher: 66%

Finance اخبار

Interest Rates,Bond Yields,Stocks

As U.S. interest rates rise and bond yields reach new highs, stocks may be affected by bond market volatility. A calm bond market is crucial for all markets as borrowing costs are tied to Treasury yields. Higher volatility leads to higher risk premiums and discount rates on financial assets. The current level of bond market volatility is relatively low but has increased recently.

As implied U.S. interest rates revisit their cycle highs from last year and bond yields break out to fresh 2024 peaks, stocks may be at risk of getting vertigo.

This relative calm may quickly evaporate if inflation fears intensify, in which case a drawdown in stocks would almost certainly follow. And Wall Street is primed for a cooling-off period - the S&P 500 and Nasdaq are at all-time highs, having surged as much as 30% from their October lows. Strategists at Bank of America note that on average since 1929 the S&P 500 has had 5% daily pullbacks three times a year and 10% corrections once a year. The index has not had a 2% pullback in over 100 trading days, so a meaningful drop is probably due soon.

The upward repricing of Fed expectations and bond yields has failed to stop the equity juggernaut, with the S&P 500 and Nasdaq both advancing around 10% in the first quarter. For the equity market to really weigh down on the economy, the 10-year yield might need to rise another 100 basis points, Elliott reckons. That would smash through October’s 5.00% peak and obliterate current Fed rate cut expectations.

این خبر را خلاصه کرده ایم تا بتوانید سریع آن را بخوانید. اگر به خبر علاقه مند هستید، می توانید متن کامل را اینجا بخوانید. ادامه مطلب:

 /  🏆 31. in İR
 

از نظر شما متشکرم. نظر شما پس از بررسی منتشر خواهد شد.

ایران آخرین اخبار, ایران سرفصلها

Similar News:همچنین می توانید اخبار مشابهی را که از منابع خبری دیگر جمع آوری کرده ایم، بخوانید.

Colombia Returns to Bond Market in Test for EM Junk AppetiteColombia returned to the bond market, testing investor appetite for emerging market junk bonds.
منبع: BNNBloomberg - 🏆 83. / 50 ادامه مطلب »

Bitcoin volatility spikes amid record ETF inflows, analysts say bull market is just getting startedThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
منبع: KitcoNewsNOW - 🏆 13. / 78 ادامه مطلب »

Will Dogecoin lose its woof as market volatility rises?Leading meme coin Dogecoin [DOGE] may experience headwinds this week as volatility markers hint at the possibility of significant...
منبع: CryptoAmb - 🏆 22. / 68 ادامه مطلب »

Landmark U.S. settlement could impact Canadian housing marketHousing market.
منبع: CBC - 🏆 32. / 63 ادامه مطلب »