Investing.com – Wall Street stocks fell sharply on Friday due to the reversal of the yield curve, highlighting concerns over a possible recession in a context of slowing global growth.
The decline of 1.77%, the loss of 1.90%, while the fall of 2.50%.
The gap between Treasury yields and Treasury has turned negative for the first time since 2007, sparking a widespread sell across all markets.
The yield curve serves as a filter for the economy. In good economic times, long-term bond yields outperform short-term bonds, as investors expect an expanding economy to translate into higher interest rates. Long-term interest.
But for months, analysts have wondered whether the US economy can sustain its growth despite slowing growth elsewhere, especially in China and Europe.
US government bond yields were also held back by the fall of the Bund, while weaker-than-expected German PMIs once again feared that the Eurozone is headed for a recession.
Financial services, mainly banks, were hardest hit by the plunge in government bond yields, which prevented banks from generating net interest.
Wells Fargo (NYSE :), JPMorgan Chase (NYSE 🙂 and Bank of America (NYSE 🙂 ended the day in the red.
The renewed focus on slowing global growth comes just days after the Federal Reverse downgraded its growth outlook and indicated that interest rates are likely to be maintained until 2019.
Among the profits of companies, Nike (NYSE 🙂 fell more than 6% after posting slightly lower third-quarter fiscal sales. But Tiffany & Co (NYSE 🙂 ended up 3.2% after its modest growth forecast allowed it to recover an earlier loss of 2.8%.
Commodity inventories also fueled sales because fears that a slowdown in the global economy would hurt demand for industrial commodities.
As a sign of risk aversion, the defensive segments of the market showed some resistance as utilities rose 0.69% and consumer staples fell 0.23%. %.
On the economic front, economists 'estimates have rebounded and exceeded, pushing homebuilders' stocks up.
PulteGroup (NYSE :), DR Horton (NYSE 🙂 and Lennar Corporation (NYSE 🙂 closed the day sharply higher.
The rebound in home sales came as mortgage rates fell thanks to the Fed's continued pause on tightening monetary policy.
The weekly Freddie Mac mortgage rate poll, released Thursday, revealed a 4.28% rate on a 30-year fixed rate loan, up from 4.31% last week and 4.94% in mid-November. .
Main winners and losers of the S & P 500 today:
Tiffany & Co (NYSE :), Verizon (NYSE 🙂 and ConAgra Foods (NYSE 🙂 were among the top winners of the S & P 500 for the session.
SVB Financial (NASDAQ :), Brighthouse Financial (NASDAQ 🙂 and United Locations (NYSE 🙂 have been among the worst of the session on the S & P 500.
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