Nobody’s quite sure why, but after a good start (the NASDAQ briefly hit new highs), the US stock market rolled over and took a big dive, led by Goldman Sachs and the rest of the financial sector. Perhaps because the Fed wasn’t as keen about raising interest rates as people had hoped? Or because Treasury yields were down a bit? Changes in the latest tax law proposals? The explanations seem weak, but then the media has to come up with something to tell the public. But bottom line, the major averages are all down more than 1%, for the worst decline since October 11th.
Asian stocks had been mixed; Chinese markets a bit higher, Japanese and Indian stocks a bit lower. In Europe, shares were more decisively lower, and the STOXX 600 ended down 0.53%
As suggested above, bonds rallied and fixed income yields fell. The 10-year Treasury dropped to a 2.427% yield, down from 2.6% just last week. Lower ... Log in or subscribe to continue reading.