Stocks continued to retreat from their recent record highs on
Tuesday, weighed down by an ongoing plunge in the price of oil. Bonds
rallied as investors bought the safest assets, pushing the yield on the
benchmark 10-year Treasury note back below 2 percent for the first time
in three months.
The moves suggest that investors have little confidence the U.S.
economy will continue to grow at the 5 percent annual pace reached in
the final quarter of last year. As a consequence, company earnings will
suffer. The reason for the gloomy prognosis is a slowdown in growth
elsewhere in world, particularly Europe.
The slump in the price of oil, which dropped well below $50 a barrel
Tuesday from $107 in June, has also prompted a sharp shift in investor
sentiment. (more)
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