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.