What the Fed’s biggest rate hike in decades means for the bear market in bonds

Historically bad. That’s how the $53 trillion US fixed-income market has performed this year as the Federal Reserve works to curtail high inflation threatening to wreck the economy. To turbo charge the effort, the Fed on Wednesday fired off its biggest benchmark interest rate increase in nearly thirty years. But what does that mean for … Read more

This asset class with an 8% yield can withstand a great deal more pain, fund manager says

Few assets have been safe this year from the pummeling in financial markets, and junk bonds have also been rather, well, trashy. Year-to-date, the SPDR Bloomberg High Yield Bond ETF JNK, +0.24% has lost 16%, in what is almost certainly going to be the worst performance since the 2008 financial crisis. Its spread to Treasurys … Read more

Bitcoin crash: These three metrics show how bad the carnage is, and what to expect next

Hello! Welcome back to Distributed Ledger, our weekly crypto newsletter that reaches your inbox every Thursday. I’ll walk you through what’s going on in the current bear market. As usual, find me on Twitter at @FrancesYue_ to send feedback, or tell us what you think we should cover. You can also reach me through email … Read more

US inflation expected to keep running hot: Traders see 4 straight months of roughly 9% or higher CPI readings

Just a day after Federal Reserve policy makers delivered their biggest rate hike in 28 years, the US inflation outlook continues to look dire in one obscure part of the financial market. Traders of so-called fixings, or derivatives-like related instruments to Treasury inflation-protected securities, expect four straight months of annual headline consumer-price index readings at … Read more

Crypto crash: What contagious risks could Celsius, Three Arrows pose? Here’s what to watch

The latest crisis started Sunday with Celsius, one of the biggest crypto lending platforms, pausing all withdrawals, swaps and transfers between accounts. The company reportedly has hired restructuring attorneys to advise on possible solutions for its mounting financial problems, according to a Tuesday report by the Wall Street Journal. Meanwhile, rumors swirled over potential stress … Read more

Why stocks and bonds went into relief-rally mode after Fed’s jumbo rate hike

Financial Reserve markets suffered an absolute bloodbath in the days leading up to Wednesday’s Federal Reserve decision, with stocks plunging and bond yields soaring in the wake of surprisingly hot inflation data — a sign that investors feared a Volcker-esque reaction from Federal Chairman Jerome Powell and the rest of the Federal Open Market Committee. … Read more

In `fragile’ financial markets ahead of Fed’s decision, some traders and strategists see risk of instant recession

Financial markets are on precarious footing since last Friday’s surprise reading on accelerating US inflation for May — with Treasurys, stocks, credit and currencies all exhibiting friction or tension ahead of the Federal Reserve’s interest-rate decision on Wednesday. According to strategist Ben Emons and trader Tom di Galoma, the process of transmitting monetary policy through … Read more

Strategist who nailed the recent S&P 500 top says three things are needed for a market bottom

Wariness is in order after the S&P 500’s bear-market finish and a potential 75 basis-point Fed hike just one day away. Gains for stock futures and a potential bounce are fading fast. Morgan Stanley’s Mike Wilson, who can count some wins after pounding the table this year over a gloomy stock setup, told clients on … Read more

US Futures Rise After S&P 500 Slides Into Bear Market

US stock futures edged higher, pointing to a partial rebound for major indexes after the S&P 500 closed in a bear market for the first time since 2020. Futures tied to the S&P 500 gained 0.5% after the broad-market index tumbled 3.9% on Monday. Nasdaq-100 futures climbed 0.7%, suggesting a rise in technology stocks after … Read more

Stagflation concerns mount: Americans are increasingly worried about red-hot inflation, jobs and their own deteriorating finances

Consumer inflation expectations are back at record highs, but people have no plans to slow their spending, according to a regional Federal Reserve bank survey released Monday. Households saw a 6.6% median inflation rate in the year ahead, setting a record high first set in March, according to the Federal Reserve Bank of New York’s … Read more