Primary tabs

Traders are asking if the bond and stock selloff is the start of something big

US stocks

Traders are asking if the bond and stock selloff is the start of something big

Bloomberg Published on Sat, Feb 03, 2018 / 2:37 PM GMT+8

A-

A+

(Feb 3): They’ve faced threats before: swollen valuations, a stagnating economy, stretches of declining earnings. Now investors are dealing with a new menace, and it’s wreaking more havoc than anything in two years.

It’s the bond market, where the biggest jump for interest rates since March has bulls questioning the staying power of an equity advance now seven months from being the longest ever. So drastic is the runup in yields that it’s knocking stocks down during a period when analysts are pushing up earnings estimates four times faster than any time since 2012.