Falling Rates a Reason to Sell for Recession-Wary Stock Traders
- President has urged Fed to cut rates to help growth, equities
- Study shows stocks have fallen on days when bond yields slide
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Falling bond rates have been instrumental in driving the stock market higher in 2019, right? It’s a bit more complicated than that.
Sure, in the broadest sense, the tumble in 10-year yields has coincided with a sizable rally in the S&P 500, which is up 12%. But a closer look shows a more nuanced relationship in their day-to-day swings. Over the past five months, the S&P 500 has dropped a net 8% in sessions the bond rate has sunk, according to Credit Suisse.