The Dow is on track to close the day below 30,000 points for the first time since June 17. A more sizable plunge could land the index at a two-year low Friday.
Investors don’t have many places to make money at the moment: In addition to sinking stocks, the bond market is also selling off, sending US Treasury yields soaring to 11-year highs in recent days. The 10-year yield fell back a bit Friday but remains near 3.7%, and the 2-year yield is above 4.1%. That’s a much better return than you can get with stocks these days, so high bond yields are adding pressure on the stock market.
The market sell-off could continue for some time, as stock valuations are compressed by the Fed’s actions, said Ivan Feinseth, chief market strategist of Tigress Financial Intelligence. Investors “may not see a bottom until there’s confirmation that inflation indicators turned significantly lower, he added.
In other words: There’s much to worry about on Wall Street. CNN Business’ Fear and Greed Index has fallen solidly into “Fear” mode in recent days and is nearing “Extreme Fear.” Investors don’t see much to smile about on the horizon.