US home sales fall for the 8th month in a row The UK will now see its fifth premier since the divisive 2016 Brexit referendum. “Although the resignation of Liz Truss as Prime Minister leaves the UK without a leader when it faces huge economic, fiscal and financial market challenges, the markets appear to be relieved,” said Paul Dales, chief UK economist at Capital Economics.Īnother Conservative leadership election is due to take place within a week, with the next prime minister expected to be announced on Friday, October 28. Need more proof? Markets usually hate uncertainty. UK government bond yields rose at their fastest rate on record, sending borrowing costs surging, upending the country’s mortgage market and forcing the Bank of England to make three successive interventions to rescue overstretched pension funds. Investors immediately protested her disastrous “growth plan” when it was revealed in September. Kim Kardashian can officially say that her ill-fated 72-day marriage to Kris Humphries lasted longer than the tenure of British Prime Minister Liz Truss.Ī revolt among members of Truss’ Conservative Party sealed her fate as the shortest-serving prime minister in Britain’s history on Thursday, reports my colleague Julia Horowitz.īut the failure of her fleeting leadership was really written by financial markets. “Some are undoubtedly pulling out of the market and buying bonds, but it seems like retail investors are mostly taking a wait-and-see approach to equities, holding onto Big Tech stocks and rotating into more stable, dividend-paying sectors like energy.”
“While activity is certainly a far cry from the meme stock rally, I’d say it’s holding up fairly well,” said Thomas Mason, senior analyst at S&P Global Market Intelligence.
It also could mean that the heyday is over for meme stock fan favorites like AMC, GameStop and Bed Bath & Beyond.īut don’t panic yet. One is that it could spell a longer, deeper market downturn. The bottom line: A loss of retailer investors is concerning for many reasons. Robinhood is down 47%, and Morgan Stanley is down 24%. Shares of Charles Schwab have dropped by about 20% so far this year. “In this new environment, we are operating with more staffing than appropriate.” “Last year, we staffed many of our operations functions under the assumption that the heightened retail engagement we had been seeing with the stock and crypto markets in the Covid era would persist into 2022,” Robinhood CEO Vlad Tenev wrote in a message to employees following the announcement.
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