Growing fears of a global recession now has investors looking for safe harbors beyond Wall Street.
The latest bout of selling to open the week comes amid an extended slump for major indexes. The benchmark S&P 500 is down more than 7% in September.The Dow Jones Industrial Average became the last of the major U.S. stock indexes to fall into what’s known as a bear market Monday as the market deepened its slump amid growing fears of a global recession.
Markets in Europe closed mostly lower. The head of the European Central Bank warned that the economic outlook “is darkening” as high energy and food prices pushed up by the war in Ukraine sap consumer spending power. France, the EU’s second-biggest economy, forecast a substantial slowdown in economic growth next year.“Yields are higher, the dollar is stronger and stocks are weak,” said Willie Delwiche, investment strategist at All Star Charts.
Casino and resort operators were a bright spot following reports that the gambling center of Macao will loosen travel restrictions in November. Wynn Resorts jumped 12%. “We’re starting to have a handoff from fears about inflation and the Fed to global economic worries,” said Mark Hackett, chief of investment research at Nationwide. “We’ve reached a universal degree of pessimism.”
The yield on the 2-year Treasury, which tends to follow expectations for Federal Reserve action, rose significantly to 4.32% from 4.21% late Friday. It is trading at its highest level since 2007. The yield on the 10-year Treasury, which influences mortgage rates, jumped to 3.89% from 3.69%.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stock Futures Are Little Changed After S&P 500 Closes at Lowest Level Since 2020Futures were quiet on Monday evening after another rough day for Wall Street.
Read more »
Wall Street is delusional about coming stock market crash, recessionInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »
Fed unsure of economy’s direction as Wall Street meltdown worsensPowell’s latest remarks noting uncertainty ahead come as the Fed’s anti-inflation fight is making slow progress, leaving the institution and its boss vulnerable to criticism over the cost to workers and businesses of continued rate hikes.
Read more »
Stock Market Today: What to WatchThe pound hit a record low against the U.S. dollar amid concerns among investors about the new U.K. government's approach to tax cuts and economic growth
Read more »
U.S. stock futures point to fifth day of losses on Wall Street to challenge 2022 lowsU.S. stock futures were soft on Monday as higher bond yields and a rampant dollar depressed sentiment.
Read more »