Why the bond market correction has seen its peak
The bond market correction appears to have peaked as the equity market continues to thrive, with the S&P 500 experiencing a significant rise. Despite rising energy costs and concerns about CEO confidence, investors remain optimistic, particularly regarding AI and semiconductor sectors. However, a divergence between capital expenditure plans and workforce expansion raises questions about future economic stability.
- ▪The S&P 500 has risen approximately 11% year-to-date, marking a nine-week streak of gains.
- ▪CEO confidence has dropped significantly, with over 30% of companies planning to cut staffing in the next year.
- ▪Despite the overall downbeat tone, 37% of companies are increasing their capital expenditure plans, a near all-time high.
Opening excerpt (first ~120 words) tap to expand
ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThat the equity market is in boom mode is not up for debate. The S&P 500 is now up nine weeks in a row, a streak we last witnessed in late 2023. It is now up about 11% year-to-date. The fact that U.S. energy costs are up +47% from where they were at the end of February seems to be of little consequence to an investor base mesmerized by the AI trade that has morphed into an epic memory chip shortage, which, in turn, has sent the PHLX Semiconductor Sector index up a ripping +80% just since March 30th.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
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