Market rout shows stocks are finally catching up to what bonds have been saying

That was not pretty, but it was long overdue. The Fed moved in a slightly more hawkish direction than some anticipated, going from an expected four rate cuts in 2025 to two or less. The news was not earth shattering. Much of the market already was anticipating only two or three rate cuts, so the magnitude of the moves caught many by surprise. The CBOE Volatility Index put in a rare one-day move of 60%, from 15 to 27, a level it hasn't seen since a brief panic in August. .

"The interest expense on the debt is going to be really problematic," the money manager said. "I think that has something to do with the market sussing out that we have an interest rate problem. We used to pay $300 billion in interest expense and now it's $1.3 trillion in interest expense." The implication: if interest rates go higher the government will be forced to spend more to service the debt. The stock market has largely ignored these concerns.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The market's bad breadth — plus, this stock re-ups its membership in an elite groupEvery weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
Source: CNBC - 🏆 12. / 72 Read more »

Market Breadth Deteriorates, Global Rates SpikeThe article discusses the declining market breadth, highlighting key indicators like the NYSE Summation Index and new highs minus new lows. It also focuses on the surge in global rates, particularly in the UK and Japan, reaching levels reminiscent of 2022.
Source: Investingcom - 🏆 450. / 53 Read more »

Stock market today: Asian markets mostly lower as worries over Russia-Ukraine war loomAsian stocks are mostly lower, despite gains on Wall Street, as worries mount over escalations in the Russia-Ukraine war.
Source: wjxt4 - 🏆 246. / 63 Read more »

Stock market today: Asian markets mostly lower as worries over Russia-Ukraine war loomAsian stocks are mostly lower, despite gains on Wall Street, as worries mount over escalations in the Russia-Ukraine war. U.S. futures edged higher while oil prices were little changed. Japan’s benchmark Nikkei 225 slipped after the government reported a trade deficit for October for the fourth month in a row.
Source: AP - 🏆 728. / 51 Read more »