Don't fall for the bulls' euphemism that "volatility continues or roils the market" instead of reality: equity decline continues.
Stocks neither rise nor fall because of volatility. US debt will increase by a minimum of 600 billion in 2018, more if the infrastructure bill is passed early enough. DEBT & YIELD, that's worrying the markets. This is why the markets are declining:
- Wild trading in stocks Thursday was the result of a sharp move up in bond yields due to higher government spending and a hawkish tone from England's central bank.
- The U.S. Treasury market is expected to continue to push toward a higher path of rates, which are tightly correlated to the stock market.
- Strategists say the 10-year yield could reach 3 percent sooner than expected, and that is a level stock pros say is a problem for equities.
Barron's-3 hours ago
The chart below shows the Dow Jones Industrial Average over the last month. It closed at 24,345.75 following Monday's 1,175.21 point selloff, before rallying on Tuesday. That Tuesday rally, however, included a quick drop off the open that took the Dow as low as 23,778.74. So 24,000 splits the difference .