Tech bulls are flirting with disaster as banking pressures threaten to crash the stock market, a markets guru warns
"This is a rolling crisis," he declared, cautioning that the Federal Reserve's interest-rate hikes are"draining the banking system."
"From credit cards to all different types of companies, credit default swaps are rising on many different financial institutions," he continued."When you see that, be very careful with US equities." Credit default swaps serve as insurance against a company defaulting on its debts, and become more expensive as the perceived risk of a default grows.
McDonald is a former Lehman Brothers trader and the author of"A Colossal Failure of Common Sense," which chronicles how the investment bank ended up collapsing in September 2008 and sparking a global financial crisis.that US stocks could plummet as much as 30% by early May, as higher interest rates choke the economy and frustrated investors switch out of equities into bonds.
McDonald's collection of 21 systemic risk indicators were signaling"one of the highest probabilities of a crash in the stock market looking out 60 days," he said at the time.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
After a $2 trillion stock rebound, Big Tech wades into sea of uncertaintyThe trajectory for tech remains worrisome, but Wall Street is still betting on a second-half rebound despite little concrete evidence that it will happen.
Les mer »
U.S. stock futures dip as investors eye big-tech earningsInvestors were cautious ahead of a batch of company earnings, while also wary of looming economic data that may color the Federal Reserve's thinking.
Les mer »
Stock markets today: US futures fall ahead of tech earningsGlobal stocks and Wall Street futures declined Tuesday as investors awaited U.S. earnings reports and an update on economic growth.
Les mer »
Why the broader U.S. stock market has ‘a lot riding’ on Big Tech earningsA small group of technology giants have propped up the U.S. stock market this year, creating high anticipation for their upcoming earnings reports.
Les mer »
Stock market news: Traders brace for mega-cap tech earningsUS stocks decline as traders brace for big earnings from mega-cap tech firms
Les mer »
Enphase stock falls more than 15% as energy-tech company's revenue outlook comes up shortShares of Enphase Energy dropped more than 15% in the extended session Tuesday after the energy technology company projected lower-than-expected revenue in the current quarter.
Les mer »