US stock market under selling pressure - financial expert predicts long-term effects of the bond market

US stock market under selling pressure - financial expert predicts long-term effects of the bond market

According to a report from www.finanzen.net, the US stock market has been under selling pressure for weeks. Stock market guru Jim Cramer believes stocks are far from emerging from this downturn as bonds are currently “in charge.”

The development of the stock market currently depends heavily on the bond market. Jim Cramer explains on his CNBC investment show "Mad Money" that the downward spiral will continue until yields fall and bond prices rise. However, he believes current bond performance is overblown.

Rising bond yields signal to investors that stocks are worth more during periods of lower yields. Cramer uses McCormick's price development as an example. Although the company presented satisfactory quarterly figures, the share price fell significantly. Cramer believes McCormick shares would have risen under different market conditions, but were impacted by the current sell-off.

The impact of bond developments on the stock market is significant. If yields continue to rise, stocks will likely continue to fall. The current dominance of bonds can therefore lead to losses on the stock markets.

Source: According to a report by www.finanzen.net