The three major U.S. stock indexes closed down collectively, with the Dow down 0.42%, the S&P 500 down 0.97%, and the Nasdaq down 2.22%. The software, automobile, and aviation sectors were among the top losers, with GM and Fisker down more than 4%, United Continental Airlines,Delta Airlinesfell more than 3%,American airlinesfell more than 2%. Big tech stocks fell broadly,Nvidiafell more than 5%,Teslafell more than 4%,Microsoft、Amazonfell more than 3%. The pharmaceutical sector is among the top gainers,Eli Lillyrose more than 4%,Pfizer, AstraZeneca rose more than 3%. Most popular Chinese concept stocks fell,NIO、Baidu、Pinduoduo、JD.comfell more than 3%,Alibabafell more than 2%.DidiXiaopeng,ideal carfell more than 1%.
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Citi: U.S. bond interest rate curve inverted, what to do with U.S. stocks
While an inverted U.S. yield curve is a warning sign of a recession, it is usually followed by a rally in U.S. stocks, Citi strategists said.
Historically, U.S. stocks have rallied within a year of inversions in U.S. two-year and 10-year U.S. Treasury yields, and last week saw their first inversion since 2019, according to a report by Alexander Saunders and colleagues. . Still, the strategists say returns are typically low. “If the inversion remains tame, investors should expect below-average, but slightly above-zero stock returns,” the strategists wrote.
The S&P 500 and Nasdaq 100 have climbed over the past three weeks, but have been volatile in recent days as U.S. bond yields surged and investors turned their focus to increasingly hawkish Fed officials.The global bond sell-off continued to widen on Wednesday as thecurrencyStocks also fell sharply on the prospect of a tighter-than-expected environment. The strategists said: “U.S. stocks finally fell for the third year after inversion, but still outperformed international markets. Long-term bonds performed well.” (Source: Zhitong Financial Network)
(Article source: Financial Associated Press)