Wall Street panic over high rates: S&P500 index hits two-year low

Wall Street panic over high rates: S&P500 index hits two-year low

for this part, Markets were still wary of the pace of interest rate hikes in the US to quell inflationa concern that damaged risk assets and boosted the dollar.

“We could see a bottom in the short term,” Jason Pride, director of private equity investments at Glenmede, said, adding that some technical indicators suggest the market is a bit oversold.

“However, this bottom may be a bear market rally similar to what happened earlier this summer,” he added.

The initial gains were reversed after US Federal Reserve officials reminded investors that the central bank’s priority is to control domestic inflation.

In contrast, US 10-year Treasury yields rose to a 12-year high.Investors are preparing for higher interest rates for a longer period, following comments from Federal Reserve officials that reaffirmed their commitment to stamping out inflation.

The US 10-year yield was 3.974%, the highest since April 2010, before rising 8.3 basis points to 3.9717%. Since the beginning of August, the 10-year yield has risen 145 basis points.

The 30-year yield also hit a milestone on Tuesday, rising to 3.81%, the highest since January 2014. The yield then rose 10.5 basis points to 3.799%.

“It feels like we’re in the middle of a revenue thaw. The valuations are getting to a point that looks relatively attractive”said Joseph Kalish, chief global macroeconomic strategist at Ned Davis Research.

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