Episode 705: The DC Today - Thursday, September 21, 2023
Markets were slammed today, with the Nasdaq down -1.8%, the S&P down -1.65%, and the Dow down -1%
Markets were slammed today, with the Nasdaq down -1.8%, the S&P down -1.65%, and the Dow down -1%
Today's Post - https://bahnsen.co/48s8IyG
The violence was most felt in the bond market as yields rallied dramatically at the long end of the curve. As yields did not move much (or at all) in the short end of the curve, you saw a fair amount of inversion eroded. It is all a rate story now – as stocks are following bonds, not vice versa. QT is tightening, and high rates are tightening (with the bond market doing more of it for them). Something has to break eventually.
The Bank of England also left its interest rate alone, pausing after 14 consecutive increases.
The House GOP was four votes short of having the votes needed to advance their compromise funding bill. Some tweaks are in motion to allow for a new vote next week.
Links mentioned in this episode: TheDCToday.com DividendCafe.com TheBahnsenGroup.com
David is the Founder, Managing Partner, and the Chief Investment Officer of The Bahnsen Group.
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