Stock market guru Jim Cramer: US stock market is in the grip of the bond market

Stock market guru Jim Cramer: US stock market is in the grip of the bond market

According to a report by www.finanzen.at,
The US stock market is under downward pressure and stock market expert Jim Cramer believes that bonds are currently driving the stock market. The rising yields on the bond market are leading to a sell-off of bonds and thereby weighing on the stock market.

Following recent interest rate hikes and the Federal Reserve's reaffirmation of its intention to bring inflation under control, market participants expect interest rates to remain higher for longer. This leads to a rise in bond market yields, which in turn weighs on the stock market.

Jim Cramer emphasized that the downward spiral in the stock market will only end when yields fall and bond prices rise. He warned that current bond market trends are causing stocks to fall further and that investors could lose money on their stocks in this environment.

Rising bond yields are giving investors the feeling that stocks aren't worth as much as they were during periods of lower yields. As an example, Cramer cited McCormick's disappointing share price performance, even though the company had presented solid quarterly figures.

The effects of this development on the market are already noticeable, as the uncertainty in the bond market and the associated burden on the stock market are leading to a cautious mood among investors. This can lead to further downward movements on the stock markets and present the financial industry with new challenges.