Skip to main content

What to make of the fleeting bounce in the US stock market

Today’s sizeable pull-back in the US stock market after a much brighter start to the month fits with our view that it is not yet out of the woods. We don’t expect it continue to struggle for the reasons that appear to have led to its latest retreat – namely  a renewed surge in bond yields on the back of some reassuring data on the economy – in the form of the ISM services and ADP employment reports – and some hawkish Fed rhetoric. Instead, we think that equities will remain under pressure as the economy falters even after the rout in bonds ends.

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