Stock markets in correction mode: Rising bond yields are weighing on interest-sensitive growth stocks.

Stock markets in correction mode: Rising bond yields are weighing on interest-sensitive growth stocks.

According to a report by www.wallstreet-online.de Stock markets may be in correction mode again as US bond market yields continue to rise. The 10-year government bond is approaching the 5% mark, which is particularly weighing on interest-sensitive growth stocks from the technology sector. Stock prices have reversed since the October 12 recovery highs and have now fallen to multi-day lows. This is interpreted as a signal of weakness and there is a possibility that the stock markets will now go back into correction mode. The Nasdaq Composite and the Dow Jones show similar price developments, although the dynamics of the price recovery currently speak against a bearish scenario. The DAX has already slipped below the psychologically important mark of 15,000 points and is thus ending its price recovery. The chart picture is clearly corrective and the highs of the recovery must be exceeded to give the all-clear. The rising yields on the bond market are also weighing on the stock markets in Europe. It remains to be seen how the markets will develop and whether the highs of the recovery can be exceeded.

With regard to the German market, the DAX could come under further pressure. It is currently trading with a minus of -1.11% and is at a price of 14,777 points. Yesterday the DAX temporarily fell below the psychologically important mark of 15,000 points and is therefore at its lowest level since October 4th. Given the current economic data, this is not surprising and the price targets for countermoves have been achieved. The 15,000 points are now relevant again and it remains to be seen whether the DAX can maintain this mark or continue to experience downward pressure.

The increasing pressure on share prices is also being increased by developments on the US markets. Yesterday, Tesla in particular showed downward momentum. It remains to be seen how Wall Street develops and whether the highs of the recovery can be exceeded. The rising yields on the bond market are weighing on the stock markets and could lead to further corrections. It is therefore important to closely monitor further developments in the markets.

Source: According to a report by www.wallstreet-online.de