Stocks, bonds, commodities all fall as global recession hits 98% – Bloomberg

Financial markets on Thursday issued a stern warning to the errors of Wall Street’s daredevils. Equities are still plunging and the bearish sentiment is far from over as hawkish central bank stances shake markets on recession fears.

The S&P 500 index sank to its lowest level since December 2020, extending its decline to nearly 8% this month. The pound is hitting new lows and commodity prices are being weighed down by the strong dollar. US Treasury yields continued to rise, with the 10-year bond yield temporarily rising 21 basis points (bp, 1 bp = 0.01%) to 3.898%, the highest level since April 2010.

Models from Ned Davis Research (NDR) show that the odds of a global recession have risen to above 98% recently. A “deep” recession signal is lit. The model reached this level in 2020 and during a severe downturn in 2008-09, he said.

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