Stock Market Overview
Amid concerns over higher government bond yields, inflation, China’s slowing economy, and its looming debt crisis, major global stock indices have seen three consecutive weeks of declines.
The S&P 500 index has dropped over 5% since the end of July, with the NASDAQ 100 index and the Russell 2000 index both falling nearly 7%. Despite these declines, the stock market has surged about 20% since the beginning of the year.
The Dow Jones Industrial Average, consisting of large, stable companies, showed a milder drop, reflecting a preference for these enterprises in a rising inflation and interest rate environment. In contrast, high-valuation growth stocks in the NASDAQ may face more pressure due to rising capital costs.
Interest Rate Market
Last Thursday, the U.S. 10-year Treasury yield hit 4.33%, marking its peak since October, bolstered by supply-driven factors and robust economic indicators.
The ongoing real…
