Tag: lead sell-off stock market

Why Are High Bond Yields Bad For Stocks

There is a strong negative correlation between bond yields and stock prices. When bond yields are high, stock prices tend to decline, and when bond yields are low, stock prices tend to rise. One reason for this is that when bond yields are high, investors can earn a higher return by investing in bonds than […]

Why Do Stocks Go Down When Bond Yields Rise

The stock market and the bond market often move in opposite directions. When bond yields rise, it can be a sign that the economy is doing well and that the Federal Reserve is likely to increase interest rates. This can lead to a sell-off in the stock market, as investors expect to earn less money […]