US Markets Turn Risk-Off Ahead of Fed Minutes: In Charts
- S&P 500’s 2% fall was the worst day drop in 2023 so far
- Rising yields hurt stocks as correlation rises to 1997 high
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There are clear signs markets are now in a risk-off mode as traders position for further downside before Wednesday’s FOMC minutes. That’s after US stocks saw their worst one-day fall for 2023 as trading resumed Tuesday following choppy triple witching actions ahead of the long weekend.
Morgan Stanley says the S&P 500’s equity risk premium has now entered the “death zone” as risk-reward becomes unattractive relative to Treasuries.