Why the stock market is bloody, crypto’s getting massacred, and traders are screaming like they’re extras in Carrie.
2 years, 7 months ago

Why the stock market is bloody, crypto’s getting massacred, and traders are screaming like they’re extras in Carrie.

Slate  

Over the last few weeks, following the financial markets has felt a bit like watching the prom scene from Carrie—the party’s over, there’s blood all over the floor, and flames appear to be eating the building while the whole crowd runs screaming for the exits. Still, we’re in the midst a serious fall: Investors traditionally say it’s a “bear market” once stocks tumble 20 percent from their last peak. Are there any simpler reasons higher interest rates might be bad for stocks that you’ve glossed over? Since interest rates were so low and investors couldn’t make much money by parking their cash in safe stuff like government debt or high-grade corporate debt, they started turning to much more speculative assets that offered the hope of a jackpot, or at least decent returns. Aside from all that, everybody’s worried that the Fed is going raise rates so high that it will start a recession, which would be bad for stocks.

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History of this topic

Wall Street slumps as good news for the economy is once again bad for stocks
2 days, 8 hours ago

Wall Street slumps as good news for the economy is once again bad for stocks

LA Times  

Good news for the U.S. economy is back to being bad for Wall Street, and the stock market slumped Tuesday following better-than-expected reports on the job market and business activity. But such a solid economy could also keep up pressure on inflation, and it could make the Federal Reserve less likely to deliver the cuts to interest rates that Wall …

Stock market today: Wall Street ends little changed after giving up a big morning gain
3 weeks ago

Stock market today: Wall Street ends little changed after giving up a big morning gain

Associated Press  

NEW YORK — An early rebound for U.S. stocks on Thursday petered out by the end of the day, leaving indexes close to flat. The S&P 500 edged down by 0.1% following Wednesday’s tumble of 2.9% when the Federal Reserve said it may deliver fewer cuts to interest rates next year than earlier thought. The computer memory company’s revenue fell …

U.S. stocks fall sharply and Dow loses 1,100 points after the Fed hints at just two rate cuts in 2025
3 weeks, 1 day ago

U.S. stocks fall sharply and Dow loses 1,100 points after the Fed hints at just two rate cuts in 2025

LA Times  

Specialist Meric Greenbaum listens on the floor of the New York Stock Exchange as the Federal Reserve’s rate decision is announced Wednesday. U.S. stocks tumbled to one of their worst days of the year after the Federal Reserve hinted Wednesday that it may deliver fewer shots of adrenaline for the U.S. economy in 2025 than earlier thought. The Fed said …

The stock market is loving Trump’s return. The bond market has some concerns though
1 month, 4 weeks ago

The stock market is loving Trump’s return. The bond market has some concerns though

CNN  

CNN — Donald Trump is returning to the White House, and the stock market is loving it. And yet the bond market has some concerns that Trump’s tax cuts could add trillions to the national debt and his massive tariffs and other policies could stoke inflation. ‘The regime change’ For now, stock market investors don’t seem bothered by the jump …

Stock market today: Wall Street ticks to another record as stocks worldwide rally
3 months, 2 weeks ago

Stock market today: Wall Street ticks to another record as stocks worldwide rally

LA Times  

U.S. stocks rose to another record Thursday as financial markets around the world rallied again. The hope on Wall Street is for a form of financial nirvana where the U.S. economy’s growth can hold steady and keep profits for companies humming while the Federal Reserve continues to lower interest rates. It’s now cutting them to make things easier for the …

Stock market today: Wall Street rolls to the edge of records as hopes remain for cuts to rates
5 months, 4 weeks ago

Stock market today: Wall Street rolls to the edge of records as hopes remain for cuts to rates

Associated Press  

NEW YORK — U.S. stocks rose Friday after some mixed signals on big banks’ profits and inflation did little to dent Wall Street’s belief that easier interest rates are on the way. In the bond market, which has been home to some of Wall Street’s strongest action this week, Treasury yields yo-yoed after the release of the latest update on …

Stock market today: Global stocks are mixed after Wall Street edges to more records
6 months, 3 weeks ago

Stock market today: Global stocks are mixed after Wall Street edges to more records

Associated Press  

HONG KONG — World stocks were mixed on Wednesday after U.S. benchmarks ticked to more records following the latest signs that the U.S. economy may be slowing without falling into recession. In London, the FTSE 100 lost 0.2% to 8,177.86 after data showed that British inflation fell to the central bank’s 2% target for the first time in nearly three …

Are Indian stock markets about to crash? Keep an eye on US data
9 months ago

Are Indian stock markets about to crash? Keep an eye on US data

New Indian Express  

For most of 2022 and 2023, stock markets across the world were kept under a tight leash by the US Federal Reserve, with its continuous interest rate hikes and relentlessly dismal commentary. This so-called 'Fed pivot' came as a shock to many, as the Fed had consistently maintained a tough stance on inflation, vowing to keep interest rates high until …

Stock market today: Asian shares meander after S&P 500 sets another record
9 months, 1 week ago

Stock market today: Asian shares meander after S&P 500 sets another record

Associated Press  

BANGKOK — Asian shares were mixed on Thursday after U.S. stocks broke out of a three-day lull to close at a record. The U.S. economy has remained remarkably resilient despite high interest rates meant to get inflation under control. Plus, the Federal Reserve looks set to start lowering interest rates this year because inflation has cooled from its peak. Stocks …

Stock market today: Wall Street skids after inflation remains stubbornly high
10 months, 3 weeks ago

Stock market today: Wall Street skids after inflation remains stubbornly high

Hindustan Times  

NEW YORK — Stocks fell sharply after disappointing data on inflation made investors confront the bitter possibility that interest rates will stay high for months longer than they were hoping. The worse-than-expected inflation report may have put the final nail into hopes that the Federal Reserve could deliver its first interest rate cut in March. Stocks of smaller companies fell …

Why global financial markets are walking a tightrope
1 year, 2 months ago

Why global financial markets are walking a tightrope

ABC  

If the past few months are anything to go by, the era of dependable double digit super returns may be drawing to a close. Longer term, they have upended trading patterns and drawn the curtain on almost three decades of global trade liberalisation, ushering in a new Cold War that's threatening to turn hot. That's left money managers dazed and …

How to invest in a period of rising interest rates
2 years ago

How to invest in a period of rising interest rates

Live Mint  

Interest rates influence investing decisions. When interest rates are going down, this benchmark of risk-free returns is also going down, so it makes other investment avenues like stocks, real estate, and private equity more rewarding, relatively. But now, after a relatively long period of low-interest rates, the interest rate cycle is moving upwards. If you buy a bond in a …

Stocks lose more ground on fears a recession may be looming
2 years, 3 months ago

Stocks lose more ground on fears a recession may be looming

Associated Press  

NEW YORK — Good news on the economy remains bad news for Wall Street, as stocks fell sharply Friday on worries a still-strong U.S jobs market may actually make a recession more likely. “The Fed thinks we need more people unemployed in order to make sure inflation comes down and stays down.” Stocks have tumbled over 20% from records this …

Stocks rise amid expectations of another big rate hike
2 years, 3 months ago

Stocks rise amid expectations of another big rate hike

CBS News  

Stocks rose on Wall Street after swaying between small gains and losses for much of the day as investors brace for another big interest rate increase this week from the Federal Reserve. Most economists forecast that the Fed will jack up its primary lending rate — which influences interest rates throughout the economy — another three-quarters of a point when …

EXPLAINED: Why is US Stock Market Back on the Roller Coaster?
2 years, 4 months ago

EXPLAINED: Why is US Stock Market Back on the Roller Coaster?

News 18  

And back down goes Wall Street. The recovery was so strong that some investors wondered if Wall Street’s “bear market” was coming to an end. Later in the week, several officials gave speeches that investors saw as pushback on Wall Street’s hopes for a less aggressive Fed, including by speakers who aren’t usually biased toward raising rates sharply to control …

Crypto crash: What is happening to Bitcoin and is it good news for you?
2 years, 6 months ago

Crypto crash: What is happening to Bitcoin and is it good news for you?

India Today  

Cryptocurrency markets plummeted to an all-time low earlier today, throwing Bitcoin, Ethereum, and other coins into a bigger selloff. Amid the struggle, Bitcoin - the world's largest digital coin - saw its price tanking by over 10 per cent to $24,548 - the lowest in 18 months. According to experts, investors have become extremely wary of risky assets and that …

4 reasons the economy looks like it’s crumbling — and what to do about it
2 years, 7 months ago

4 reasons the economy looks like it’s crumbling — and what to do about it

CNN  

New York CNN Business — The American economy is super weird right now. The Fed is hiking rates Inflation has been rampant, and the Federal Reserve’s tool to fight surging prices lies in its ability to set interest rates higher. Fed Chair Jerome Powell said this month the central bank would continue to raise rates by half a percentage point …

Cryptocurrency Markets Witness a Bloodbath: Why is it Happening? Should You Buy Crypto Coins Now?
2 years, 7 months ago

Cryptocurrency Markets Witness a Bloodbath: Why is it Happening? Should You Buy Crypto Coins Now?

News 18  

The cryptocurrency market faced nothing short of a bloodbath over the last few days. Bitcoin, the world?s most popular cryptocurrency fell near the $25,000 levels a day back, drastically down from its all time high of $69,000. Market participants began panicking over inflation and a potential recession, resulting in equities and crypto markets plunging,? Bitcoin Feels the Heat Bitcoin prices, …

Stocks dive, a day after their best session in years, as economic fears intensify
2 years, 8 months ago

Stocks dive, a day after their best session in years, as economic fears intensify

NPR  

Stocks dive, a day after their best session in years, as economic fears intensify Enlarge this image toggle caption Michael M. Santiago/Getty Images Michael M. Santiago/Getty Images It was an ugly day on Wall Street, with stocks going from one of their best days in recent memory to one of their worst on Thursday. Subramanian said markets are adjusting for …

Stocks are in the midst of a wild ride as the U.S. gets ready to fight inflation
2 years, 11 months ago

Stocks are in the midst of a wild ride as the U.S. gets ready to fight inflation

NPR  

Stocks are in the midst of a wild ride as the U.S. gets ready to fight inflation Enlarge this image toggle caption Spencer Platt/Getty Images Spencer Platt/Getty Images It was a remarkable day for stocks. In a new research note, economists at Goldman Sachs said they expected the Fed to raise interest rates four times. But they added a note …

Stocks rebound but still close out worst week since winter
3 years, 3 months ago

Stocks rebound but still close out worst week since winter

Associated Press  

Wall Street rebounded on Friday, led by companies that would benefit most from a healthier economy, but not by enough to keep the stock market from its worst week since the winter. Such data means “you hear the word ‘stagflation’ come up once in a while, which would be the worst outcome” said Rich Weiss, chief investment officer of multi-asset …

EXPLAINER: Why rising rates are unsettling Wall Street
3 years, 10 months ago

EXPLAINER: Why rising rates are unsettling Wall Street

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Interest rates keep marching higher, …

EXPLAINER: Why rising rates are unsettling Wall Street
3 years, 10 months ago

EXPLAINER: Why rising rates are unsettling Wall Street

Associated Press  

NEW YORK — Yes, it’s possible to have too much of a good thing, and that’s exactly why stock markets around the world are getting so unsettled. But expectations for stronger growth — plus the higher inflation that could accompany it — are pushing interest rates higher, which is forcing investors to re-examine how they value stocks, bonds and every …

Interest rates are rising and tech stocks are likely to head in the other direction
3 years, 10 months ago

Interest rates are rising and tech stocks are likely to head in the other direction

ABC  

We live in strange and ridiculous times. Along with growing disquiet and distrust around the central bank actions that have pushed interest rates so low, these negative rates are a major reason why professional investors have been right in there with amateurs throwing money at bitcoin and other cryptocurrencies, as well as tech companies that either make no profits or …

The secret behind the booming stock market in the face of the coronavirus crisis
4 years, 6 months ago

The secret behind the booming stock market in the face of the coronavirus crisis

ABC  

Forget everything you've ever learned about the economy and the supposed link with financial markets. Just three months into what the Bank of England describes as the deepest and sharpest downturn in centuries and stock markets are on a tear, galloping back towards record levels at breakneck speed. Don't even think about thinking On Thursday night, Jerome Powell, the head …

Stocks and bonds sending mixed signals about economy
4 years, 7 months ago

Stocks and bonds sending mixed signals about economy

CNN  

New York CNN Business — The stock market has soared since mid-March. But hope springs eternal for stock market investors – in large part because the tech companies that dominate the S&P 500 are still thriving. Bond market expects lower rates for longer Dover adds that bonds are pricing in the potential “Japanification of the economy” – meaning that bond …

Wall Street is ignoring the omens of recession — here’s why
5 years, 3 months ago

Wall Street is ignoring the omens of recession — here’s why

Salon  

The world is on the brink of a recession, if all the breathless headlines are to be believed. The answer to my students’ question has a lot to do with profits and interest rates, but also “animal spirits.” Moving in mysterious ways Both the Dow Jones Industrial Average and the Standard & Poor’s 500, Wall Street’s two main gauges for …

Yes, stocks are up again. No, recession worries aren’t gone
5 years, 3 months ago

Yes, stocks are up again. No, recession worries aren’t gone

Associated Press  

NEW YORK — The U.S. economy is sending some worrying signals about a possible recession, yet the stock market has gone on a what-me-worry ride toward record heights. If investors see that companies are still bringing in profits, and stocks don’t appear too expensive, they’ll risk an investment even if the economy hasn’t gotten an all-clear on the recession watch. …

The stock market is ‘spoiled’ by rate cuts
5 years, 6 months ago

The stock market is ‘spoiled’ by rate cuts

CNN  

New York CNN Business — Any parent knows that one of the worst things to do when a screaming child is throwing a temper tantrum is to give in and let the kid have exactly what they want – especially in public. “Barring major escalations in the trade dispute, the economy seems okay.” Deepak Puri, chief investment officer of the …

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