Traders work on the floor of the New York Stock Exchange.
Rising interest rates are rattling the stock market, and that could be the catalyst for a bigger sell-off, strategists say.
Stocks tumbled on Thursday, with the Dow Jones Industrial Average shedding more than 100 points in the afternoon. The Nasdaq fell by as much as 1.2% in midday trading before trimming back some of its losses.
The 10-year Treasury yield was at 1.28% as stocks sold off, after trading as high as 1.31% earlier in the day. The yield was about 15 basis points – or 0.15% – lower in the middle of last week.
Julian Emanuel, chief equity and derivatives strategist at BTIG, said the stock market could be in the middle of a 10% to 15% correction, after the rapid run-up in interest rates that took the 10-year to fresh one-year highs.
The sell-off would have been more like 5% to 10% pre-pandemic, he said.
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