Traders cashing out


The great market rally of 2024 looks dangerously close to unraveling as Wall Street’s once-invincible bull brigade begins to withdraw its winnings.

Money has just been pulled out of equities and junk bonds at the fastest rate in more than a year. 

Dip-buyers have been muzzled. 

The S&P 500 fell every day this week as the top seven tech behemoths closed nearly 8% lower 

The S&P 500 is up 16% since Hamas attacked Israel, 17% since the 10-year Treasury yield’s 2023 peak, and about 20% since the Fed began raising rates two years ago.

Yet the sheer scale of market gains now threatens to work against risk assets, going forward.

With government bonds selling off, the 10-year Treasury rate pushed back above 4.6%, about 40 basis points above the so-called earnings yield of the S&P 500. 

Bloomberg 19 april 2024 at 22:15 CEST


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