Equities Were Weak Due to Higher Interest Rates Concerns☕
Equities were weak across the board as interest rates sensitive and consumer sectors led the way south again on the feared impacts from higher rates. Tesla paced S&P 500 decliners as Musk dialed back expectations citing higher interest rates and consumer hesitation, and admitted that he was "paranoid" about future prospects. Private equity giant Blackstone slid 8% as higher fund rates and tighter credit conditions have led to less deal making and worsening investment returns. Discover Financials sank on higher write-off charges against future loan losses (on higher rates), and Zions Bankcorp reported loan demand and issues with office lending, with the stock cratering by 10% on the day. It does appear that higher funding costs are finally making their way into the underlying real economy.
