Stocks continued their recent selloff on Tuesday amid a slew of concerning headlines for investors.
Labor market data showed job openings unexpectedly jumped in August. An ongoing labor strike in the auto sector is intensifying. And surging oil prices are within a few percentage points of 2023 highs.
But as the wall of worry builds in markets and the S&P 500 back-pedals, market strategists tell Yahoo Finance the story behind the action is all about the bond market. Investors fear a hot economy could prompt the Federal Reserve to raise interest rates again.
“Yields are the biggest pain trade for all types of investors right now,” eToro US investment analyst Callie Cox said. ”Interest rates fundamentally change how people think about their money and investing. And you’re seeing that happen live right now.”
On Tuesday, the yield on 10-year Treasury notes touched 4.8%, its highest level since 2007.
All else equal, higher interest rates make “safer” investments like money market funds, which…
2023-10-04 04:30:35
Original from finance.yahoo.com
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