The Dow opened below 30,000 points, a level it briefly breached on Thursday. If the Dow ends the day below 30,000, it will close below that barrier for the first time since June 17. And some more broad-based indexes could hit two-year lows on Friday.
Investors don’t have many places to make money right now: In addition to sinking stocks, the bond market is also selling off, sending U.S. Treasury yields to an 11-year high in recent days. The 10-year yield fell back slightly on Friday but remains near 3.7%, and the 2-year yield is above 4.1%. That’s a much better return than you can get with stocks these days, so higher bond yields are putting pressure on the stock market.
In other words: Wall Street has a lot to worry about. CNN Business’s Fear and Greed Index has fallen firmly into “fear” mode in recent days and is nearing “extreme fear.” Investors don’t see much to smile about on the horizon.