Once again, the rise in government bond yields is acting as the catalyst for the sell off in stocks.
Stock markets have witnessed a surge in volatility since last night’s Federal Reserve meeting where the central bank said it would soon be appropriate to start lifting rates.
Stock markets are driving higher ahead of the Federal Reserve’s interest rate announcement.
The markets have seen a lot of volatility in the past two sessions as mounting tensions about a possible war between Russia and Ukraine, along with chatter the Federal Reserve will issue a hawkish update tomorrow has been driving sentiment.
Traders continue to be in selling mode as fears mount surrounding the Russia-Ukraine situation. Also playing into the mix are the concerns the Federal Reserve will issue a hawkish update on Wednesday.
Bearish sentiment is dominating the markets as stocks, oils and metals are enduring large declines.
Stock markets in the US are driving higher today as government bond yields have retreated from their recent peaks.
Bond yields have been increasing recently as traders are starting to factor-in the possibility of higher interest rates in the months ahead, and typically the spikes in yields have sparked moves lower in stocks.
Equities are under pressure as the rise in US government bond yields suggests the markets are pricing-in an interest rate hike from the Federal Reserve. In recent weeks, there has been growing speculation the US central bank will hike rates three or possibly four times in 2022.
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