Tech bulls risk blowing up as banking turmoil may crash stocks: expert

"This is a rolling crisis," he declared, cautioning that the Federal Reserve's interest-rate hikes are"draining the banking system."

"From credit cards to all different types of companies, credit default swaps are rising on many different financial institutions," he continued."When you see that, be very careful with US equities." Credit default swaps serve as insurance against a company defaulting on its debts, and become more expensive as the perceived risk of a default grows.

McDonald is a former Lehman Brothers trader and the author of"A Colossal Failure of Common Sense," which chronicles how the investment bank ended up collapsing in September 2008 and sparking a global financial crisis.that US stocks could plummet as much as 30% by early May, as higher interest rates choke the economy and frustrated investors switch out of equities into bonds.

McDonald's collection of 21 systemic risk indicators were signaling"one of the highest probabilities of a crash in the stock market looking out 60 days," he said at the time.

Portugal Últimas Notícias, Portugal Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

U.S. stock futures dip as investors eye big-tech earningsInvestors were cautious ahead of a batch of company earnings, while also wary of looming economic data that may color the Federal Reserve's thinking.
Fonte: MarketWatch - 🏆 3. / 97 Consulte Mais informação »

Stock markets today: US futures fall ahead of tech earningsGlobal stocks and Wall Street futures declined Tuesday as investors awaited U.S. earnings reports and an update on economic growth.
Fonte: wjxt4 - 🏆 246. / 63 Consulte Mais informação »

Why the broader U.S. stock market has ‘a lot riding’ on Big Tech earningsA small group of technology giants have propped up the U.S. stock market this year, creating high anticipation for their upcoming earnings reports.
Fonte: MarketWatch - 🏆 3. / 97 Consulte Mais informação »

Stock market news: Traders brace for mega-cap tech earningsUS stocks decline as traders brace for big earnings from mega-cap tech firms
Fonte: BusinessInsider - 🏆 729. / 51 Consulte Mais informação »

Enphase stock falls more than 15% as energy-tech company's revenue outlook comes up shortShares of Enphase Energy dropped more than 15% in the extended session Tuesday after the energy technology company projected lower-than-expected revenue in the current quarter.
Fonte: MarketWatch - 🏆 3. / 97 Consulte Mais informação »