Stock prices fall as Treasury yields climb on rate hike fears
Updated
Updated · MarketWatch · May 4
Stock prices fall as Treasury yields climb on rate hike fears
11 articles · Updated · MarketWatch · May 4
On Monday, the 2-year Treasury yield approached 4% and the 30-year yield rose above 5%, with Interactive Brokers economist José Torres warning equities were unprepared for possible Fed tightening.
Torres said the bond market was signalling investors may need to endure further rate increases, pressuring shares as markets enter a seasonally weak period.
He added that each day without a Middle East peace deal increases the risk of renewed inflation pressure and a tougher test for the Fed's inflation-fighting leadership.
With inflation at 3.3%, can new Fed Chair Kevin Warsh avoid the rate hikes that markets now fear?
As war pushes oil past $100 and inflation lingers, is the US economy spiraling into 1970s-style stagflation?