It’s the Worst Bond Market Since 1842. That’s the Good News.

So far in 2022, with inflation raging, bonds have lost 10%—among the worst returns in US history. On Wednesday, the Federal Reserve raised interest rates by 0.5 percentage points, the sharpest increase in 22 years. Yet, just as your body begins healing from an injury before you can feel any improvement, the worst for bond … Read more

Stock market selloff is exactly what the Fed wants, former NY Fed chief says

New York CNN Business — Turmoil on Wall Street is a feature, not a bug, of the Federal Reserve’s fight against inflation, according to former New York Federal Reserve President Bill Dudley. “What’s happening right now is exactly what the Federal Reserve wants to happen,” Dudley told CNN in an interview, referring to recent volatility … Read more

ADP sees ‘signs of slowing’ in labor market as U.S. adds 247,000 private-sector jobs in April

This version corrects the gain in total private sector employment in April A job seeker speaks with recruiters during a job fair last summer at O’Hare International Airport in Chicago. Scott Olson/Getty Images The numbers: Private payrolls rose by 247,000 in April, according to the ADP National Employment Report released Wednesday. Economists polled by The … Read more

Stock market starts to price ‘rising risk of stagflation,’ says Research Affiliates CEO. Here’s how investors may be positioning.

Equity markets are starting to price “the rising risk of stagflation,” according to Research Affiliates chief executive officer Chris Brightman. “Investors are repositioning portfolios to protect the real value of their financial capital,” Brightman wrote in a Research Affiliates note this month. “Capital markets have panicked as investors try to anticipate how soon the Fed … Read more

Bond-market ‘wreckage’ in early 2022 unlikely to become the norm, says Nuveen CIO

It’s easy to feel queasy about leaps after a stunningly bad first quarter. A sharp rise in Treasury rates this year has been a massive drag on fixed income, with losses feeling even more acute when coupled with a stock-market rout that landed the S&P 500 index SPX, +0.57% back in correction territory on Friday … Read more

Stock market making you seasick? Here’s why trading is so choppy in 2022

Feeling a little seasick? It’s not just you. Besides turning in a historically ugly performance over the first four months of 2022, stocks have been uncommonly choppy. “This has become a classic trader’s market as spikes in volatility and increasingly bearish headlines reverberate,” said Quincy Krosby, chief equity strategist for LPL Financial. Take a look … Read more

Rising real yields threaten key driver of long-running stock-market gains — and put tech names more at risk

Rising inflation-adjusted yields in the US are undermining the long-running trade in which investors favor stocks over other asset classes, and are poised to hit the technology sector even harder. That trade — known as “TINA,” an acronym for “There Is No Alternative” to equities — is being increasingly tested by real yields, which have … Read more

U.S. inflation rate surges to 6.6%, PCE index shows, but prices might also be peaking

The numbers: The Federal Reserve’s preferred measure of inflation rose a sharp 0.9% in March, but the increase largely stemmed from a surge in the cost of gas and there were some signs that intense price pressures could be starting to ease. Over the past 12 months, the personal consumption price index has climbed 6.6%, … Read more

Boomers are leaving the stock market. Here’s what comes next, says this strategist.

A powerful, tech-led stock surge may be on the cards for Thursday, with Facebook parent Meta Platforms in the driver’s seat after less disastrous than feared results. With earnings, inflation, a COVID-19 resurgence and war all in the balance, any equity gains could easily disappear in another sell-the-rip move. Wariness abounds as gross domestic product … Read more

Cryptocurrency Firms Push Back Against Proposal to Police Treasury Markets

WASHINGTON—A Securities and Exchange Commission proposal intended to make Treasury markets more resilient has sparked a backlash from cryptocurrency companies, which say it could increase legal risks for so-called decentralized finance, or DeFi, platforms. The rule, proposed by the SEC in January, would expand the agency’s definition of an exchange to include a broader array … Read more