An analysis of the market sell-off: What’s likely causing it and how worried you should be
2020-02-02 09:11:39 source：CNBC
February 1, 2020
Wall Street is suffering a risk-off relapse, producing a milder but familiar set of the symptoms felt during last year’s overdone summertime recession scare.
Bond yields have rushed toward their old lows, flattening the gap between very short-term and 10-year Treasuries. World growth expectations are rolling over, as China’s work and travel restrictions to contain the Wuhan coronavirus defer the payout of the trade-peace dividend that investors expected after the U.S.-China trade deal.
And a stock market has gotten a pretty good rinse — though not yet a true washout. The S&P 500 has dropped 3% from its record high. Economically cyclical groups have been purged. Bonds are leading stock returns one month into the year. And the top-performing sector for the year so far is utilities, followed by the marquee tech giants believed to be impervious to economic ebbs and flows.
Read more: