That weighs on returns.īonds are supposed to be safe havens during times of market and economic volatility. Bond yields have surged, which means that prices are down. There have been few places for investors to run and hide this year. It’s the bear market for just about everything. The CNN Business Fear & Greed Index, which measures seven indicators of market sentiment, sank further into Extreme Fear territory. Traders are betting that the labor market strength will keep pressure on the Federal Reserve to continue raising interest rates aggressively for the rest of this year and in 2023.

The job market remains relatively healthy, even as the broader economy has contracted. But fears about inflation, rate hikes, rising bond yields and recession returned with a vengeance in August and September.Ī drop in weekly jobless claims spooked investors Thursday. The stock market had a promising start to the quarter, soaring in July. 32nm Westmere chip sits on display during the Microsoft Global Energy Forum in Houston, Texas, U.S., on Thursday, Jan.

What is the dow today