Nervousness had been building for days on Wall Street. The catalyst was the recent spike in the yield on a closely watched government bond to a seven-year high.
Stock prices have been hurt lately by fast-rising interest rates. On Wednesday, the 10-year yield once again touched its highest level in seven years.
Interest rates began spurting higher after several encouraging reports on the economy. Higher rates can slow economic growth, erode corporate profits and make investors less willing to pay high prices for stocks.
The r-squared value of 0.0006 in Figure 1 shows that EPS growth over the past five years explains less than one tenth of one percent of the difference in price between stocks in the S&P 500. Stocks can see their PE multiples expand and contract in a manner that has almost nothing to do with changes in EPS, which makes looking at these metrics a poor indicator of valuation or future returns.Politics - Hannity Community
This is the Trump stock market. The unnecessary trade war with Jyna (China), the stupid and pointless renege on the JCPOA and subsequent US sanctions on Iran, perhaps the deficit inflating tax cuts, the general uncertainty, all are coming home to squat. Investors are waking up to the smell of failure.
Most people ranting about a down donât usually own stocks. Surely you Trump haters didnât stay in the market after he was elected. Should be no worries. You predicated this and got out right away. I recall you heavily were warned.