Treasury Rally Ignites Debate on How Fast Fed Needs to Cut
Two-year yield dipped below 10-year for first time since 2022 Traders are pricing in risk of a cut before September meeting A major rally in the $27 trillion Treasury market is laying bare anxiety that the US economy is sliding into recession and the Federal Reserve...
Commodities Face Contagion as Global Market Meltdown Deepens
Losses in copper and crude underscore worries over growth Investors bail on profitable gold trades to cover other losses Commodities from copper and gold to crude oil tumbled, while paring back some of the losses, as global economic malaise dimmed the outlook for...
Volatility-Rocked Quants Threaten New $170 Billion Selling Spree
Vol-control funds and CTAs sharply cut stock exposure High volatility may cause more selling from systematic players Systematic funds have offloaded more than $130 billion of global stock bets in recent weeks. Now these rules-based players threaten to take their...
This May Be 1987-Type Slide, Ed Yardeni Says, Seeing Policy Shifts
Economist famed for ‘bond vigilantes’ term coined in 1980s Yardeni sees some risk of credit crunch, but not base case Longtime market and economy watcher Ed Yardeni said that the current global equities selloff bears some similarity to the 1987 crash, when...
Vanguard CEO Aims to Bring Low-Cost Investing to Private Assets
Salim Ramji took over as firm’s first-ever outsider CEO The new chief has no plans to try to take Vanguard public Vanguard Group Chief Executive Officer Salim Ramji said his firm is “really about” low-cost investing, and that he’d eventually like that to carry into...
Sahm Sees US ‘Uncomfortably Close’ to Recession, Not in One Yet
Sahm says Fed is deliberate, but shifts tack when it needs to The good thing is that the Fed has space to do ‘quite a bit’ Former Federal Reserve economist Claudia Sahm said that while the US isn’t yet in a recession, it’s “uncomfortably close,” and predicted central...
Tech ETFs That Drew Billions Are Battered by Losses Hitting 60%
The tech funds have suffered big losses in recent weeks Investors fret over worsening economic data, earnings releases Traders plowed billions of dollars into betting on a big rebound in tech stocks last month. Now their leveraged-up ETF positions are getting thrashed...
Global Bond Rally Accelerates as Market Bets on Big Rate Cuts
Swaps imply at least five quarter-point cuts by Fed this year Dovish repricing follows weaker-than-expected US jobs data Global bonds rallied as traders bet the Federal Reserve and fellow central banks will turn more aggressive in cutting interest rates amid mounting...
JPMorgan Trading Desk Says ‘Getting Close’ to Buy-the-Dip Opportunity
Rotation out of technology sector may be ‘mostly done’: JPM Bounce depends on data including manufacturing, inflation As the selloff in global stocks intensified Monday, JPMorgan Chase & Co.’s trading desk said the rotation out of the technology sector might be...
Global Carry Trade Unwind Extends as Peso Drops, Yen Gains
Funding currencies the yen and yuan surge on short-covering Mexican peso retreats as pressure returns on EM currencies An unwinding of global carry trades is helping to jolt markets around the world. The yen and yuan pushed higher Monday, while the Mexican peso...
Gold Plunges as Global Equity Mayhem Sets Traders on Edge
Pressure to liquidate gold positions to cover margin calls The yellow metal was down by as much as 3.2% earlier on Monday Gold plunged on Monday as traders assessed the implications of a major global stock rout. Spot bullion fell as much as 3.2%, the biggest single...
U.S. Money Supply Has Done Something So Unusual That It Hasn’t Happened Since the Great Depression — and a Big Move in Stocks May Await
For much of the past 19 months, professional and everyday investors have enjoyed a hair-raising bull market rally. Since the start of 2023, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and...
Wall Street’s Bears Warn on Economic Growth Risks to Stocks
Morgan Stanley’s Wilson says markets exposed to slowing growth Wilson, JPMorgan’s Matejka see defensive stocks outperforming The US stock plunge is vindicating some of Wall Street’s most prominent bears, who are doubling down with warnings about risks from an economic...
Electric Car Sales Plummet 37% in Germany as Slump Deepens
July registrations show no signs of recovery after subsidy cut Carmakers cut back production as EV demand disappoints Germany’s electric-vehicle sales slumped in July, extending a broad pullback since incentives ended late last year and undermining automakers’ plans...