What we’re reading (9/26)
“S&P 500 Notches New Closing Low For 2022, Dow Falls Into Bear Market As Dollar Surges” (CNBC). “The S&P 500 notched a new closing low for 2022 and the Dow Jones Industrial Average slipped into a bear market as interest rates surged and turmoil rocked global currencies. The S&P 500 declined 1.03% to 3,655.04, falling below the June closing low of 3,666.77. At one point during the day, the index dipped to 3,644.76, less than eight points away from its intraday low of 2022: 3,636.87.”
“European Political Turmoil Roils Global Markets” (DealBook). “The pound briefly hit a decades-long low against the dollar, at $1.03, before recouping some of its losses. But that recovery appears largely tied to expectations that the Bank of England will make a rare extra hike in interest rates to head off inflation spurred by the government’s new fiscal policy. Markets are now pricing in a series of increases to bring the benchmark to 6 percent by next summer.”
“Tech Stocks Face Another 10% Drop or More as Strong Dollar Hits Profits” (Bloomberg). “More than two-thirds of 914 respondents in the MLIV Pulse survey think profits of the technology companies will disappoint the market throughout 2022. Firms including Alphabet Inc.’s Google are at risk of advertisers cutting spending as the global economy struggles, while streaming services including Netflix Inc. face an exodus of price-sensitive subscribers with consumers tightening their belts.”
“Traders Who ‘Just Want To Survive’ Sit On $5 Trillion Cash Pile” (Bloomberg). “Investors have $4.6 trillion stashed in US money-market mutual funds, while ultra-short bond funds currently hold about $150 billion. And the pile is growing. Cash saw inflows of $30 billion in the week through Sept. 21, according to figures from EPFR Global. Where once that stash yielded practically nothing, the vast bulk now earns upwards of 2%, with pockets paying 3%, 4% or more.”
“Inside Goldman Sachs’ ‘Tough Week’ As Pink Slips Were Handed Out From New York To San Francisco” (Insider). “It's been ‘a tough week,’ one Goldman insider said of the sackings. Among those given pink slips were a number of senior associates and vice presidents working for the technology, media, and telecommunications team in New York and San Francisco, according to a person with knowledge of the layoffs. At least some of the axed TMT employees worked on mergers and acquisitions, the person added.”
