The Stock Market's Horror Show Gets Scarier
Contrary to the Fed’s calm optimism, stocks keep finding reasons to panic.
A lot of this going around lately.
Photographer: Drew Angerer/Getty Images North AmericaIf you had any doubt the Fed and markets see two completely different economies, today’s action should put that to rest. If the economy were a TV show, the Fed would see “House Hunters” while the stock market sees “The Haunting of Hill House.”
Stocks tumbled hard for a second straight day, with the Nasdaq Composite Index briefly dipping into bear-market territory. Meanwhile, the yield curve – the gap between two- and 10-year Treasury yields – shrank nearly to zero, on the edge of going negative and signaling a recession. Unlike yesterday’s freak-out, which was mostly about the Fed not being as freaked out as the stock market is, today’s was brought to you partly by President Donald Trump pushing the government closer to a shutdown over border-wall funding.