S&P 500 on track for worst day in four months By Reuters
(Reuters) – The and the Nasdaq were on track for their worst day in four months on Tuesday, hit by weak consumer confidence data and surging Treasury yields.
Here are some investor comments on the saleoff. The Nasdaq fell 2.5% during early afternoon trading, as the 10-year Treasury Yield hit its highest level since June.
(Graphic: S&P dividend yield vs , https://fingfx.thomsonreuters.com/gfx/mkt/gdpzyqergvw/Pasted%20image%201632850424793.png)
PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK
“It’s all about rising yields.”
Consumer confidence fell, but that’s only part. It’s partly due to this time of year, and it’s also part of inflation worries. That’s why investors are hitting the brakes.”
You have a real fear factor. Powell once again admitted that inflation remains persistent. This kind of talk fuels bond markets and sends yields higher.
“September has lived up to its expectations.”
CHARLIE RIPLEY, SENIOR INVESTMENT STRATEGIST, ALLIANZ INVESTMENT MANAGEMENT
“Today’s interest rate induced selloff is a reminder of how impactful monetary stimulus has been with the Fed signaling a swift removal of the emergency stimulus measures is coming soon. Market participants will soon feel the pain of losing Fed support. Equity markets will need to adapt to this change.
LINDSEY BELL, CHIEF INVESTMENT STRATEGIST, ALLY INVEST IN CHARLOTTE, NORTH CAROLINA
“I know consumer confidence today was weak, but I think what you are seeing with the consumer and investors in general is that they’re saying one thing and doing another. Investors are buying the dip even though the market is falling and sentiment is declining.
There is potential on the opposite side. It is healthy for the markets to make corrections.
BRIAN PRICE, HEAD OF INVESTMENT MANAGEMENT, COMMONWEALTH FINANCIAL NETWORK
“It is not surprising to see value and cyclical stocks hold up better than their growth counterparts given the increase in yields. If we do see the Delta wave end and people spend more money, then value could be outperforming growth.
“Some may believe that sentiment has become too ebullient which contrarians believe sets the stage for a market pullback like we’re seeing today. If interest rate increases moderate from here on the back of declining inflation expectations, then it wouldn’t surprise me to see the market resume its march higher as we move into the fourth quarter.”
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