In short, the bullish impulse is being wrung out. Investors were pummelled by a confluence of worrying developments Tuesday, among them squishy guidance at industrial bellwether General Electric Co., worsening COVID trends in China, the dollar’s fourth consecutive daily gain and a report showing a weakening in consumer confidence. The Nasdaq 100 Index bore the brunt, falling more than 4 per ent to the lowest in 11 months.
That’s a stark departure from the past decade, when all but one year saw the equity benchmark rising on average after a down day. Many factors may have underpinned the shift, though behind it all is the Federal Reserve. As bond yields head higher, one big bull case for equities — the idea that investors have no choice but to own stocks, sometimes abbreviated TINA for “there is no alternative” — is in jeopardy.