2024-09-09
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cailianshe news, september 9 (editor: xiaoxiang)for those on wall street who remain confident that economic performance won't sink the market, the situation is becoming increasingly difficult.
the worrying data that the bond and commodity markets had long "predicted" woke up risk asset traders from their "sweet dreams" last week, with u.s. stocks posting their worst performance since the regional banking crisis in 2023.
after rebounding from a brief slump in early august, stock market bulls appeared to be succumbing to concerns about economic growth again earlier this month as a series of discouraging economic indicators, represented by the labor market, continued to emerge - the s&p 500 has now fallen for four consecutive days, credit spreads have widened at the fastest rate since early august, and the philadelphia semiconductor index has plunged 12% - its biggest drop since the outbreak of the epidemic.
with the s&p 500 still up about 13% year to date, the volatility still looks like a blip in the bull market chart, with risk-sensitive assets still largely pricing in a soft economic landing ahead. however, some worrying signs are beginning to emerge.
the most obvious was undoubtedly the rare unanimous trading behavior among investors across assets last friday. as the negative impact of more than two years of hawkish policy actions by the federal reserve gradually emerged, u.s. stocks last week joined the plunge that has plagued oil, copper and u.s. treasury yields for more than a month, dragged down by economically sensitive companies.