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Stock markets in correction mode: Yields on the bond market continue to rise.
Post: According to a report from Stockstreet.de, the stock markets appear to be back in correction mode. The rising yields on the bond market in the USA are weighing on the stock market, especially interest-sensitive growth stocks from the technology sector. Yields on the bond market in the USA have been rising steadily for a week and have already reached the 5% mark. This has led to a decline in prices on the stock markets. The Nasdaq Composite in particular is increasingly establishing itself in a downward wave, which was to be expected from a seasonal perspective. The Dow Jones also reached its recovery high just above wave 4 and rebounded downwards from this point. The DAX...
Stock markets in correction mode: Yields on the bond market continue to rise.
Contribution:
According to a report from Stockstreet.de, the stock markets appear to be back in correction mode. The rising yields on the bond market in the USA are weighing on the stock market, especially interest-sensitive growth stocks from the technology sector. Yields on the bond market in the USA have been rising steadily for a week and have already reached the 5% mark. This has led to a decline in prices on the stock markets. The Nasdaq Composite in particular is increasingly establishing itself in a downward wave, which was to be expected from a seasonal perspective. The Dow Jones also reached its recovery high just above wave 4 and rebounded downwards from this point.
The DAX has already taken a step further and temporarily slipped below the 15,000 point mark, the lowest level since the beginning of October. The price recovery is now over and the chart picture is clearly corrective. This development is not surprising given the current economic data.
The impact of these developments on the market and the financial industry could be significant. Rising yields in the bond market could result in a shift of capital from stocks to bonds as bonds become more attractive due to higher yields. This could lead to a devaluation of stocks. Technology companies that are dependent on interest rates could be particularly affected.
The observed weakness in the stock markets can lead to a wave of corrections. Investors may reconsider their positions and take profits, which could lead to further price declines. However, given the momentum of the price recovery, the possibility of a bullish reversal remains.
It remains to be seen how the stock markets will develop. However, it is advisable to monitor developments closely and be prepared for a possible continuation of correction mode.
Source: https://www.stockstreet.de/boerse-intern/1025820-aktienmaerkte-zurueck-im-correctionmode
Read the source article at www.stockstreet.de