Growth Angst Shakes Markets Already Obsessed With Inflation Risk
- Price of oil surges as Russia’s war on Ukraine intensifies
- Market is pricing increasing risk of recession, says McGlone
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Investors who spent the last year stressing over inflation gave evidence Tuesday that obsession could be supplanted by -- or, worse, combined with -- worries about a slowdown in growth.
Spurring the shift is the shock that pervades markets when oil spikes as much as 12% in one day, a sight that can’t help but sow queasiness among traders weeks before Federal Reserve rate hikes while a war rages in Europe. Amid the anxious circumstances, investors bailed from stocks. They’re also diving headlong into bonds, where yields have plunged even though inflation fears persist, and may even increase amid fallout from the Ukraine war.