The 10-year yield fell below 3.5%.īank shares also declined as fears of a recession increased. Treasury yields continued to defy the Fed and fall on fears the central bank is going too far. The Dow closed below 34,000 on Wednesday and then the selling intensified on Thursday following the poor retail sales data. "The tug-of-war between the Fed and the markets is squarely on the market's side: the slowdown is not 'transitory,' and the Fed will be forced to act before 2024," Krosby added. "The equity market's reaction is now factoring in a recession, and rejecting the possibility of the 'soft/softish' landing mentioned recently by Powell at the ," Quincy Krosby, chief global strategist at LPL Financial, wrote Thursday. With Wednesday's half a percentage point hike, the targeted range for rates is currently 4.25% to 4.5%, the highest in 15 years. The central bank also said it will continue hiking rates through 2023 and projected its fed funds rate to peak at a higher-than-expected 5.1%. The selling began Wednesday in the wake of the Fed's latest boost in its overnight borrowing rate. That was a bigger loss than the Dow Jones estimate of a 0.3% decline. Retail sales fell 0.6% in November, according to the Commerce Department. The disappointing retail sales report suggested inflation is taking a toll on consumers. Shares of Netflix fell 8.6% following a Digiday report that said the streaming firm is offering to return money to advertisers after missing viewership targets. Mega-cap tech stocks declined, with shares of Apple and Alphabet down more than 4%, while Amazon and Microsoft were lower by more than 3%. The sell-off was broad-based with only 14 stocks in the S&P 500 trading in positive territory. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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