Wall Street Breakfast Bearish sentiment on stocks soars
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Feb 27, 2025 Investor pessimism is on the rise, with bearish sentiment hitting levels not seen since the Great Recession. DATA reveals layoffs at DOGE impacting the market. On a brighter note, Amazon is unveiling a groundbreaking quantum chip. Meanwhile, the median age of first-time homebuyers has surpassed 50, raising eyebrows. Analysts are enthusiastic about Nvidia's performance, while durable goods orders surge, sparking concerns about future demand amidst rising jobless claims.
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Bearish Sentiment Spike
- Bearish investor sentiment soared to a 2.5-year high, reaching 60.6%, similar to levels seen during the 2008 financial crisis.
- This surge in pessimism comes despite the S&P 500 only being down 3% from its recent high and still up slightly year-to-date.
Bond Market Clues
- The drop in the 10-year Treasury yield, despite rising inflation, suggests pessimism about economic growth.
- This renewed focus on potential recessionary risks contributes to the negative market sentiment.
Jobless Claims Rise
- Weekly jobless claims increased significantly, exceeding expectations, and may reflect federal layoffs.
- A sharp rise in claims filed in the District of Columbia supports this observation, as a large percentage of federal employees are located in the D.C., Virginia, and Maryland area.