Sevens Report: Why Rising Yields Drove the S&P 500’s Worst Day Since October
Sevens Report: Why Rising Yields Drove the S&P 500’s Worst Day Since October
S&P 500 has its worst day since October. Here’s why stocks were down.
The benchmark 10-year Treasury yield spiked to 4.293%, but “it’s not really a problem until 4.50% and higher,” said Tom Essaye, founder of the Sevens Report on the markets. “If yields keep rising, that will become an increasing headwind on markets and the economy.”
“The Goldilocks economic data continued last week, and that has been an important foundational positive and somewhat calming influence on markets amidst the recent headline chaos,” Essaye said. “As long as economic data stays this Goldilocks, the chances of a protracted decline in stocks will remain low.”
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