Skip to main content

US equities don’t seem to be factoring in a gloomier economy

The plunge in the stock market in the US that has accompanied the recent ratcheting up of rate expectations there has been partly blamed on concerns that more aggressive Fed tightening is undermining the outlook for the economy. But the sell-off seems mainly to reflect an accompanying rise in Treasury yields rather than a repricing of risks surrounding growth. The implication is that it may have further to run even if today’s retreat in yields, which seems to have spilled over from action in Gilts tied to Bank of England policy, continues for a bit.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access