On September 23, the three major U.S. stock indexes weakened collectively. As of press time, the Dow fell 1.16%, falling below the 30,000-point mark, the Nasdaq fell 1.53%, and the S&P 500 fell 1.42%.
U.S. crude oil futures extended losses to 5% and are now at $79.3 a barrel, their lowest level since January 2022.
Market concerns about the Fed’s tightening monetary policy and sharply slowing economic growth continued. After the Fed announced its third interest rate hike of 75 basis points, many investors and analysts believed or began to accept that the U.S. economy was already on the way to recession. .
In the past few days, the US 2-year and 10-year US bond yields both hit highs not seen in more than a decade, and the rise in risk-free yields will suppress investors’ preference for risky assets, which is expected to put some pressure on US stocks.
In addition, short-term U.S. Treasury yields have been higher than long-term Treasuries since early July, a trend that often signals a recession.
Tim Lesko, senior wealth advisor at Mariner Wealth Advisors, said, “One day in the future, participants may find that a recession is not the end of the world. But in the current situation, financial markets are behaving like the sky is falling.