Rate fears sink stocks (Dow Closes Below 10,000)

Just announced on CBS Radio News. And then I found the following story on CNN.

How 'bout that Bush Recovery, folks?????

:-)

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Rate fears sink stocks

Market suffers big selloff as investors worry about how rising rates will hit stock valuations.

May 10, 2004: 4:07 PM EDT

NEW YORK (CNN/Money) - U.S. stock markets tumbled Monday on worries about how interest rates will impact stock valuations and the economic recovery.

According to early tallies, the Dow Jones industrial average (down 127.30 to 9990.02, Charts) lost 1.2 percent, and closed below 10,000 for the first time since December 10, 2003.

The Standard & Poor's 500 (down 11.50 to 1087.12, Charts) index lost just over 1 percent, making a new 2004 low, closing at its lowest level since December 19 of last year.

The Nasdaq composite (down 21.80 to 1896.07, Charts) lost around 1.1 percent, also a new 2004 low, and its lowest close since November 21 of last year.

Worries about when interest rates will rise and by how much had kept stock markets rangebound for weeks and sent them lower last week, when the Federal Reserve hinted rates would rise, but did not give a timeline. For many investors, Friday's much stronger-than-expected monthly employment report provided that timeline.

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http://money.cnn.com/2004/05/10/markets/markets_newyork/index.htm?cnn=yes

it's because the Fed might raise the interest rates next month. Yeah, right, whatever.

Reach in your pocket and spend your way to...whatever.

And remember the Republican slogan: "A rising tide lifts all yachts."

Prosperity is, um, just around the corner.

...talking about how strong the economy is - and how positive all the indicators are.

Guess he didn't look at the Dow today......

:shrug:

They can keep us alive forever on our "subsistence diet" and no one will stand up and yell. Evidently some folks need a good shaking to start thinking revolutionary thoughts.
Maybe a taste of poverty will wake 'em up.

The market is jumpy because we may get our ass thrown out of Iraq a lot sooner than the corporations had planned on. Who is kidding who here?

Don

It is the BIG MUDDY of this century and we are only 4 years into the century.

The big muddy river is gaining momentum and raising. 'Tis looking ugly and ..... who ever thinks it 'tis rosy is living in denial and that ain't the river through Egypt

Yep, the Iraq situation is absolutely driving the market down, but so is the fear of interest rates. If rates go up, the housing bubble--which is the only thing keeping the economy afloat right now--will pop with a blast heard 'round the world. When that happens, we're in deep shit. I think we're finally about to hear the talking heads utter the "I" word, and it's long overdue.

against us for the prison scandal. Faith in the US overseas is probably at its lowest since, um, ever...

Fool me once, shame on you,...fool me,...uh,...please keep the money rollin' in and don't screw me,...

Hah!!! Dream on and be deceived. I, for one, will feel no pity whatsoever for those who lose their ass buying into a deception that the rest of the world will NOT buy.

big elephant in the living room. Bullshit about the rate increase. They've expected this for quite some time. It's because they are finally being told that we could have our ass whipped in Iraq and leave a totally unstable environment in the ME (not good for an oil guzzling country). You damn right it's because of Iraq---and perhaps some fat asses fear their boy George won't be around to hand out goodies.

To short the Ten Year notes is to gain value on you position from the perception or reality of interest rates rising.
Nobody in the financial markets did not see this coming from a long way off. To say the pullback is only due to rates is not being honest, or at the very least astute.