Reemergence of the Growth Scare

Financial markets are grappling with a renewed growth scare, which has manifested through falling oil prices, weakened stock performance, and slumping crypto values. Oil prices dip below $70 per barrel, while the two-year U.S. Treasury yield has notably decreased, indicating investor anxiety about economic stability. This reflects a realization that numerous economic issues previously overlooked are becoming more pronounced, suggesting that the so-called growth scare was never truly gone. As a result, market participants are increasingly concerned about the sustainability of economic growth and are acknowledging the reality of deteriorating economic conditions.