“The bear is alive and kicking,” Mike Wilson, Morgan Stanley’s chief U.S. equity strategist, said in a note on Monday. “We think the failed breakout last week for the S&P 500 confirms we are still mired in a cyclical bear market.”
Stocks fell on Monday as bond yields resumed their August downturn, raising concerns about the state of the economy.
The benchmark 10-year Treasury yield, which fell to its lowest since 2016 last week, dipped to 1.63%. The spread between 2-year and 10-year Treasury yields narrowed to only 6 basis points on Monday, near its lowest level since 2007.
Dow Jones Industrial Average fell 391 points, or 1.49%, to 25,896.44, while
the S&P 500 dropped 36.21 points, or 1.24%, to 2,882.44 and the
Nasdaq Composite is down 1.2% to 7,863.41. It was the second down day in a row for the market, which had staged a remarkable recovery last week until the selling returned again on Friday.
"The bear is alive and kicking," Mike Wilson, Morgan Stanley's chief U.S. equity strategist, said in a note on Monday. "We think the failed breakout last week for the S&P 500 confirms we are still mired in a cyclical bear market."
Bank stocks declined as interest rates dived.
Bank of America and
Goldman Sachs both dropped more than 2%, while
J.P. Morgan slid 1.87%. The SPDR S&P Bank ETF is down 2.1% on Monday.
Comment: For insight into the likely players, see: NATO 'Deep State' and Israeli interests both served by the collapse of the Austrian government