US stocks, bond yields set for latest decline
US stocks are set for another historic fall on Wednesday as investors prepare for another selloff as markets wait for a new President.
Investors are likely to start moving funds into the bond market, which is expected to be the weakest of the major US markets as investors await the next president’s economic agenda.
A weaker stock market is also expected to lead to a weaker dollar and slower economic growth.
The Dow Jones Industrial Average was down 8.6%, the S&P 500 was down 4.4%, and the Nasdaq Composite was down 2.8%.
“This is going to be a really, really bad year for stocks,” said Richard Pomerantz, chief investment strategist at The Pomeranz Group.
“The biggest problem for stocks will be that they’re not going to grow.
That’s what they’re looking at right now.
I think this is going be the first major fall in US stocks.”
On Wednesday, US stock futures fell by around 2%.
The S&P 500 fell 2.3%, and it’s down 3.4% this year.
Investor confidence in the US economy is on the decline after Donald Trump’s election, which has raised concerns about the country’s future.
Analysts at Goldman Sachs expect the US stock market to lose about 2% this week and the bond yield will decline around 4%.
“I think we’re going to see a further drop in stock prices as the markets start to get worried about the new President,” said Mark Jaccard, chief market strategist at JPMorgan Chase & Law Offices in New York.
“They’re not looking at it as a good time to buy stocks right now, but the market is still quite a bit lower than a year ago.
It will be a long, hard week ahead.”
Trump is expected on Wednesday to announce his economic plan and deliver a series of economic announcements, including his plan to cut taxes on corporations and individuals and ease restrictions on international trade.
The economy has been on a long decline and investors are hoping for a boost to US growth in the coming months.
US stock indexes have fallen by more than 10% in the past year.
The markets are also expected watch for a stronger dollar, which could be bad news for US companies that are trying to expand abroad.
The dollar has been weaker than the euro since the start of 2017, but it is expected the US dollar to be trading around 70 US cents US by the end of this year, a level not seen since mid-2015.