Stocks are down this morning, and down pretty hard. As of midday Friday, the Dow was down some 235 points, or 1.27%, which makes Sept. 9 the worst day for equities since the post-Brexit-vote selloff.
Results 1 to 5 of 5
Market Selloff Indicates a ‘Turning Point’ for Stocks, Bonds
Stocks are down this morning, and down pretty hard. As of midday Friday, the Dow was down some 235 points, or 1.27%, which makes Sept. 9 the worst day for equities since the post-Brexit-vote selloff.
So, why did stocks tumble this morning? Not surprisingly, it was due to Fed speak and fear that the central bank monetary punch bowl is about to be taken away.
Specifically, today’s selloff was a result of comments from Boston Federal Reserve President Eric Rosengren, who said in an interview that the U.S. central bank could resume gradual rate hikes as the risks facing the economy are more in balance.
In addition to the selloff in stocks, there was also a selloff in Treasury bonds that sent the yield on the benchmark 10-year Treasury Note up to 1.67%.
Rising bond yields are not good for stocks, but this new normal in the bond market could be one of the “turning points” for investors as we head into the fall.
That’s in part the thesis of bond guru Jeffrey Gundlach of DoubleLine Capital.
