Fitch Downgrade Weighs on Equities

Monday, stocks ended little changed in Europe but rose slightly in Asia and gained 0.4% in the U.S. on 11B shares traded. Precious metals advanced 1% and their miners gained twice that amount.

Tuesday, stocks closed little changed in Asia but fell 0.9% in Europe, and 0.4% in the U.S. on 11B shares traded. The 10-Year U.S. Treasury bond yield rose 2% to end at 4.05. Precious metals declined 2% while their miners lost twice that amount. Fitch downgraded U.S. bonds a notch.

Wednesday, stocks lost 2.0% in Asia, 1.3% in Europe, and 1.1% in the U.S. on 12B shares traded. The VIX shot up 16% to close at 16.09. Precious metals fell 1% while their miners gave up three times that amount. The NASDAQ closed below 14,000. Here’s an article with visuals of favored and disfavored sectors through the business cycle.

Thursday, stocks fell 1.1% in Asia, 0.6% in Europe, and 0.3% in the U.S. on 12B shares traded. The 10-Year U.S. Treasury   .

Friday, stocks gained 0.6% in Asia, advanced slightly in Europe but fell 0.3% in the U.S. on 12B shares traded. The VIX gained 7% to end at 17.10. The 10-Year U.S. Treasury bond yield rose 3% to end at 4.19. The S&P 500 Index closed below its 4500 benchmark. Finally, the Federal Reserve balance sheet declined 36B to 8.21T.

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