Why Stocks Plunged Last Week
Interest rates rose on inflation fears, cratering stocks for the week. On Friday, the Standard & Poor's 500 stock index plunged by 2.1%, capping a 3.9% drop for the week, the biggest weekly loss in two years.
It was a week of big financial news: Janet Yellen exited as chair of the U.S. Federal Reserve Board of Governors, ceding control of the nation's central bank to Jerome Powell; the political crisis in Washington, D.C. deepened, adding to investor jitters; and employment costs soared while new figures on jobs and wages stoked inflation fears.
The yield on a 10-year U.S. Treasury bond rose from 2.4% to 2.8% in just the past month, according to data from the Fed. Meanwhile, in the same period, the yield on a 10-year Treasury Inflation Protected Security moved up only slightly. The difference between the nominal 10-year Treasury bond yield and the TIPS yield shows the market's expectations of rising inflation over the next 10 years.
- Protect Yourself Against Spearphishing
- Even The New York Times Gets Investment Facts Wrong Sometimes
- First-Half Of 2018 Stock Investing Highlights
- U.S. Leading Indicators Growth Rate Slowed In May; Should You Worry?
- Signal To Noise Ratio Of U.S. Economy Is An Anomaly
- Father's Day Financial Tip: Put Your Kids To Work
- Is Economic Growth Sustainable?
- How The New Small Business Tax Break Phases Out
- Fed Shatters Conventional Economic Wisdom
- Four New Signs Point To Economic Strength (2-Minute Read)
- Are You Better Off Than 10 Years Ago?
- CNN, CNBC, And WSJ Mislead Investors
- 10 Years Of Financial History And The Current Outlook In 2-Minutes
- Lost In The Wild Headlines: A U.S. Economic Boom
- Facts About The Recent Volatility And Fears Of A Trade War
- A Guide To The New Rules On Tax Deductions In 2018
- Trade War, Resignations, And Scandal Overshadow Rise In Leading Indicators
- Changes To Estate Tax Explained In This Week's Wealth Update
- Stocks Surge 1.7% Friday As Tariff Fears Subside And New Jobs Surge
- The Economic News That Did Not Make Headlines This Week
- Will Rising Bond Yields Be Bad For Stocks?
- Stock Market Is Unfazed By Russia Indictment, Displaying What Makes America Great
- Stock Prices Corrected 11.8% Before Rallying Sharply Friday
- Why Stocks Plunged Last Week