When interest rates rise, it typically becomes more expensive to borrow money, which can slow economic activity and lead to declines in stock prices as investors adjust their expectations. Yes, stock market corrections can occur even when the economy is strong. That range and average helps distinguish corrections and bear markets from routine market volatility, such as smaller pullbacks that may not reflect a broader reassessment of growth, inflation or earnings.
Trading Summit Sale Extended
Ownership data provided by LSEG and Estimate data provided by FactSet. Index data is provided © S&P Dow Jones Indices LLC. Market data is provided and copyrighted by LSEG Data & Analytics and Morningstar. Sign up for news, insights, and expert views with ASX Investor Update. Learn about power, energy and the future of commodity derivatives trading.
- We view the current phase as a rebalancing, one that is creating opportunities across sectors and helping normalize valuations after an extended period of concentrated growth leadership.
- Use our stock tracker to monitor stocks, indices, ETFs, commodities and penny stocks in one place.
- Figure 1 illustrates the discrepancy between the actual DAX and the DAX as reported on Germany’s most-watched and highly trusted nightly news, the ZDF heute-journal.
- Consider Germany’s DAX stock index as reported on the country’s most-watched nightly news programme.
Personal finance
Any information we provide is to help with your research and isn’t financial advice. Treasuries added to yesterday’s rally following the data. However, they quickly reversed course after White House Senior Economic Advisor Kevin Hassett talked down expectations for upcoming labor data. Ahead of the open Treasury yields moved modestly higher following reports that Chinese regulators had reportedly told financial institutions to pare holdings of US Treasuries.
Oracle, for example, is down 52% from its all-time high. If a correction of 10% were to happen, then investors could expect to see a bottom somewhere around 6,300. However, the S&P 500 is trading at a historically expensive valuation, which could set the stage for downside in the near term. If we exclude the very brief 20% crash sparked by “Liberation Day” last April, the last proper bear market occurred in 2022, so the current bull run probably still has legs.
Angelo graduated magna cum laude with a bachelor’s degree in business administration from Athens University of Economics and Business in Greece and received an MBA with concentrations in finance and investments from Minnesota State https://www.ip-watch.org/2017/06/27/informal-formal-seed-systems-usually-enemies-can-otherwise/ University. Thus far, selling within software stocks has been broad and indiscriminate, and in some cases, valuations may already reflect a significant degree of disruption risk relative to current fundamentals. The current macroeconomic backdrop also helps provide investors with viable alternatives to tech for growth, in our view, something that was harder to find in prior years. Real-time quote and/or trade prices are not sourced from all markets.