"Futures are trading lower after a spectacular week came to an abrupt end Friday, as all the major indices were absolutely hammered. Voices across financial media were busy pointing out that the market is the most expensive based on the Schiller PE (price-to-earnings) metric since the dot-com crash in 2001. Pair that with the 30-year Treasury bond printing the highest yield in almost 20 years, and all the ingredients for a meltdown were firmly in place."
"When the market finally closed to end the session and the week, all of the major indices were buried in a sea of red. The small-cap heavy Russell 2000 took the biggest blows Friday, closing down 2.44% at 2,793, while the Nasdaq finished the day down 1.54% at 26,225. The S&P 500, which printed numerous new highs last week, closed Friday at 7,408, down 1.24%, while the Dow Jones Industrial Average was last seen at 49,526, down 1.07% on the day."
"Yields exploded higher on Friday, as higher oil prices, inflation worries, and the view that interest rate cuts are not coming until 2027. And in an odd anomaly, the 20-year bond actually closed with a higher yield than the 30-year bond, at 5.14% versus 5.12%. The benchmark ten-year note finished trading on Friday 4.60%."
"Gold was not the place to hide, as precious metals also took a hit on Friday. Inflation and fears of a potential rate hike were cited as the reasons for the weakness. When the final bell rang on Friday, Gold was down 2.26% at $4,546, while Silver"
Major stock index futures traded lower after a strong prior week ended with broad declines. The market closed with the Russell 2000 down 2.44%, the Nasdaq down 1.54%, the S&P 500 down 1.24%, and the Dow down 1.07%. Treasury yields rose sharply on higher oil prices, inflation worries, and expectations that rate cuts would not arrive until 2027. The 20-year bond finished with a higher yield than the 30-year bond, while the 10-year note ended at 4.60%. Oil prices jumped, lifting Brent and West Texas Intermediate, and increasing drilling activity as reflected in rig counts. Gold fell 2.26% amid inflation concerns and fears of a potential rate hike.
Read at 24/7 Wall St.
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