US stocks kicked the third-quarter off with gains on Friday following the first half’s worst start since 1970. The gains came as interest rates fell, with the 10-Year US Treasury yield hitting a low of 2. 80%.
Bond yields are starting to fall as investors worry about an imminent economic recession. Listen to The Refresh: Insider’s real-time news podcast. US stocks jumped on Friday, kicking off the third-quarter with gains after the first half of the year represented the worse return for the S&P 500 since 1970.
The gains in stocks came as bond yields edged lower, with the 10-Year US Treasury yield falling 8 basis points to 2. 89%. The 10-Year yield hit a low of 2.
80% on Friday, after trading at a cycle-high of 3. 50% in early June. Bond yields are moving lower because investors are getting more cautious about the potential for an economic growth slowdown and ultimately, a recession .
The first-quarter already saw US GDP growth contract by 1. 6%, and the Federal Reserve’s GDPNow forecast suggests the second-quarter will also see a decline of about 1%. That means the US could already be in a recession, as all it takes is two consecutive quarters of negative GDP growth.
But for now, bad news like an economic growth slowdown could be good news for the stock market , as slower growth means tamed inflation and the likelihood of fewer interest rate hikes from the Fed. Here’s where US indexes stood at the 4:00 p. m.
ET close on Friday: S&P 500 : 3,825. 36, up 1. 06% Dow Jones Industrial Average : 31,097.
46, up 1. 05% (322. 03 points) Nasdaq Composite : 11,127.
84, up 0. 9% Michael Burry of “The Big Short” believes that the market’s current 20% decline is only half-way done , as the famed investor now expects a considerable decline in earnings results from companies. Adjusted for inflation, 2022 first half S&P 500 down 25-26%, and Nasdaq down 34-35%, Bitcoin down 64-65%,” Burry tweeted on Thursday.
“That was multiple compression. Next up, earnings compression. So, maybe halfway there.
” With the first half of 2022 in the books, take a look at the 10 worst performing stocks in the S&P 500. Most of the stocks were either in the technology or consumer discretionary sectors, with some high profile names like Netflix and PayPal topping the list, among others. A decline in interest rates flowed through to mortgage rates this week, with the 30-year fixed mortgage falling to 5.
7%, according to data from Freddie Mac. That decline helped push lumber prices higher by more than 7% on Thursday. Russian president Vladimir Putin has moved to seize control of the Sakhalin-2 oil and gas project , threatening to push out major foreign players including Shell .
The move could put continued upside pressure on gas prices going forward. West Texas Intermediate crude oil rose as much as much as 2. 56% to $108.
38 per barrel. Brent crude , oil’s international benchmark, jumped as much as 2. 39% to $111.
64. Bitcoin prices fell 2. 12% to $19,298.
Ether prices jumped 0. 59% to $1,060. Gold moved up 0.
09% to $1,809. 10 per ounce. The yield on the 10-year Treasury fell 8 basis points to 2.
89%. .
From: businessinsider_us
URL: https://markets.businessinsider.com/news/stocks/stock-market-news-today-bond-yields-fall-recession-fears-increase-2022-7
