After the first half of the year represented the worst return for the S&P 500 since 1970, US stocks jumped on Friday to start the third quarter.
The 10-year US Treasury yield fell as the gains in stocks came. The 10-year yield fell to a low of 2.80% on Friday, after hitting a cycle high of 3.50% in June.
The yield on the bonds is moving lower because investors are more cautious about the potential for a recession. The first-quarter saw US GDP growth contract by 1.6%, and the Federal Reserve's GDPNow forecast shows a decline of 1% in the second quarter.
All it takes is two quarters of negative GDP growth to start a recession in the US. Slower growth means less inflation and less interest rate hikes from the Fed, which could be good news for the stock market in the long run.
At 4:00 p.m., the US index stood here. Friday is the last day of the week.
The famed investor now expects a decline in earnings results from companies as the market's current 20% decline is only half way done.
The first half of the S&P 500 was down 25% and the first half of the Nifty was down 34%. Multiple compression was what it was. Earnings compression is the next thing. It's possible that we're halfway there.
There are 10 worst performing stocks in the S&P 500. The majority of the stocks were either in the technology or consumer discretionary sectors.
According to data from Freddie Mac, the 30-year fixed mortgage fell to 5.6% this week. On Thursday, lumber prices went up by more than 7%.
Russian president Putin wants to take control of the Sakhalin-2 oil and gas project and push out foreign players. The move could cause gas prices to go up.
The price of West Texas Intermediate crude oil went up as much as 2.5%. The price of oil jumped as much as 2%.
The price of the virtual currency fell to $19,300. The price of ether went up to $1,060
The price of gold increased to $1,809.10 per ounce. The yield on the 10-year Treasury went down.
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