“The stock market sell-off is all about the ‘pain trade’ in bonds”
October 4, 2023
“Stocks continued their recent sell-off on Tuesday amid a slew of concerning headlines for investors. Labor market data showed job openings unexpectedly jumped in August. An ongoing labor strike in the auto sector is intensifying. And surging oil prices are within a few percentage points of 2023 highs.
But as the wall of worry builds in markets and the S&P 500 backpedals, market strategists told Yahoo Finance the story behind the action is all about the bond market. Investors fear a hot economy could prompt the Federal Reserve to raise interest rates again..”