NVDA - Some Bubbles Are Starting To Pop
2024-04-21 10:49:18 ET
Summary
- The yield on the 10-Year Treasury has risen to 4.62% from under 3.9% in late February.
- Rising rates are taking an increasing toll on the market, as the S&P 500 posted its worst weekly performance since March of 2023 this week.
- Bubbles in the AI sector and high beta parts of the market are deflating, while rising interest rates are impacting the commercial real estate sector.
- The S&P 500 is more than halfway to 'correction' territory and is likely to fall further in the weeks ahead.
Since late February, the yield on the 10-Year Treasury has moved up from just under 3.9% to 4.62% as of Friday's close. Hope for cuts to the Fed Funds rate have continuously been pushed off throughout 2024, and it is now possible that no rate cuts take place during the year. Last week, Goldman Sachs said the yield on the 10-Year Treasury could rise above five percent again....
Some Bubbles Are Starting To Pop