Stocks halt rally as bonds stem record losses
BNN Bloomberg
Global stocks drifted lower Wednesday as the bond market stabilized from an unprecedented rout.
Global stocks drifted lower Wednesday as the bond market stabilized from an unprecedented rout.
European stocks paused after their longest winning streak since November, while the S&P 500 opened lower after clawing back half its decline since January. Benchmark 10-year Treasury yields nudged lower to around 2.36 per cent after surging to highs unseen since mid-2019.
Bonds are taking the brunt of central-bank calls for tougher action to curb inflation as investors hold up stocks as an inflation hedge, spurring the S&P 500 to rally in five of the last six sessions.
“We are positive for equities for this year,” Seema Shah, Principal Global Investors chief strategist, said on Bloomberg Television. While the market may be more challenged in 2023 and recession risks are rising, “we still think the U.S. economy is pretty good fundamentally,” she said.
Investors have fled from bonds as the Fed promises higher rates to tame rampant inflation and the war on Ukraine drives commodity prices up 26 per cent this year.
