US stocks brace for potential market turbulence amid soaring bond yields By Investing.com

<p> <br />
</p>
<div>
<div>
<img decoding="async" alt="US stocks brace for potential market turbulence amid soaring bond yields" id="carouselImage" src="https://i-invdn-com.investing.com/news/SP500StandardandPoors500Index_800x533_L_1657544297.jpg" style="visibility:hidden" /><br />
<span>© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect </span><br />
<i class="imgGrad"/>
</div>
<p>US stock market investors are bracing for potential turbulence as bond yields soar to a 16-year-high and speculation mounts over possible Federal Reserve interest rate hikes. Albert Edwards of Societe Generale (OTC:) has warned of a possible market crash akin to the Black Monday&#8217;s 22% plunge in 1987, despite the weathering losses from August and September.</p>
<p>Edwards cautioned that bullish equity investors could face significant losses if signs of a recession emerge. This uncertainty is compounded by fluctuating economic forecasts, leading to questions about whether the economy will experience a soft landing by the middle of 2023 or enter a new economic cycle.</p>
<p>The bond yield, a key indicator of investor sentiment, has risen sharply to 4.768%, its highest level in over 16 years. This surge is causing concern among investors who are wary of the potential impact on US stocks like those listed on the S&amp;P 500.</p>
<p>Despite these headwinds, US stocks have managed to withstand losses from August and September. However, the possibility of Federal Reserve interest rate hikes remains a looming threat that could further destabilize the market.</p>
<p>The ongoing uncertainty is fueled by changing economic forecasts that are currently unable to provide a clear outlook for the middle of 2023. Some predict a soft landing for the economy, while others anticipate the beginning of a new economic cycle.</p>
<p>In light of these uncertainties, Edwards&#8217; warning serves as a sobering reminder of past market crashes such as Black Monday in 1987 when markets plunged by 22%. His cautionary note suggests that bullish equity investors could suffer significant losses if recession signs become apparent.</p>
<p>As investors navigate this uncertain landscape, they will be closely watching for any indicators that may signal future market shifts or potential economic downturns.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
</div>
<p><br />
<br /><a href="https://www.investing.com/news/stock-market-news/us-stocks-brace-for-potential-market-turbulence-amid-soaring-bond-yields-93CH-3189716">Source link </a></p><p>The post <a href="https://forextraderhub.com/us-stocks-brace-for-potential-market-turbulence-amid-soaring-bond-yields-by-investing-com.html">US stocks brace for potential market turbulence amid soaring bond yields By Investing.com</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>