Investors should be rightly fearful of [the Facebook selloff] given that the tech sector has driven most of the gains in US markets over the past 18 months. A meltdown in this sector has the potential to get very messy indeed, with related ripple out effects.
This week’s Fed decision to raise rates and tweak its guidance appears to have cut the rug out further from under the US dollar as policymakers adopted a safety first approach to future rate rise expectations, leaving them unchanged for this year. This appears to have caught markets off balance sending bond yields sharply lower and the US 10 and 2-year spread back towards its previous lows, though some of these declines could also be attributed to concerns about tariffs.
Comments