It is said that the economy is not the stock market. That is true; however, the stock market is critical to supporting household spending. In our contemporary K-shaped economy, paying close attention to the link between equity market valuations and their impact on overall household spending is one important way to monitor risk to the economic outlook in 2025. … READ MORE >
stock market
CHART OF THE DAY: What story is the high-yield bond market telling us?
Changes in stock and high-yield bond valuation levels have diverged since the start of September, a shift after largely tracking each other since the beginning of 2020. … READ MORE >
CHART OF THE DAY: Financial conditions deteriorate as stock market pulls back
U.S. financial conditions have deteriorated in recent days as investors have pulled back on riskier assets, causing the S&P 500 to shed 4.3%, the Dow Jones Industrial Average to drop 3.32% and the NASDAQ to fall 6.1% over the past three trading sessions. As these conditions have eased, the risk to the economy has grown. … READ MORE >