Investors Fear Unsustainably High Interest Rates Will Spark Bank-Loan Defaults

27 September 2023

U.S. government bond prices have plummeted, unsettling the stock market. Treasury yields have surged to 16-year highs, negatively impacting stocks, with tech giants like Amazon and Apple seeing notable declines. The robust U.S. economy and Federal Reserve’s rate hikes contribute to the instability. The S&P 500’s growth has been stunted, and the persistent rise in bond yields, driven by changing demand dynamics, paints a grim outlook.

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