Trackinsight: Bond sell-off rattles equity markets

Market review for the week from 29 August to 4 September 2022.

After Powell’s hawkish commentary last week, the recent remarks from Loretta Mester (Cleveland Federal Reserve Bank President) pushed Treasury yields higher. She said that the central bank will need to lift the "fed funds rate up to somewhat above 4% by early next year and then hold it there" to bring inflation back down to the 2% target. The benchmark 10-year U.S. Treasury yield rose 15 basis points, from 3.04% to 3.19%, in response to the Fed member’s strong message. The odds of a 75-basis-point rate hike at the September meeting increase tremendously.

The steep bond market sell-off since mid-August continues to rattle stock markets, and more specifically growth sectors sensitive to rising rates. The tech-heavy Nasdaq shed 4.21% over the week (-25.66% year-to-date). The S&P 500 fell 3.29% (-17.66% YTD), while the Dow Jones Industrial Average slipped […]

Click here to view original web page at www.marketscreener.com

About the author: StockMan

Please remember:

The information provided here is for general knowledge and educational purposes only.
It is not intended to be a substitute for professional financial advice.
Every individual's financial situation is unique, and what works for one person may not work for another.
Before making any investment or financial decisions, you should always consult with a qualified financial advisor who understands your specific circumstances and goals.

Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, should never be acted upon. Please be aware that any information posted on this site should not be considered to be financial advice and i am not a financial advisor.