Just yesterday, Federal Reserve decided it would take the less-direct approach of supporting the economy by continuing Operation Twist. Ben Bernanke also explained that policymakers are prepared to take additional steps to help the economy if the situation worsens. Well, that coupon might need to be cashed sooner rather than later, as the broad markets are plummeting along with crude oil prices.
|Dow Jones ||(180.81)||(1.41%)|
|August WTI Futures||(2.11)||(2.59%)|
Source: Yahoo! Finance
The global economy is springing leaks all over the place, as manufacturing is slowing, hurting both emerging and developed nations. Stocks and commodities plunged due to reports showing business activity across the eurozone shrinking yet again, extending the streak to five straight months. To compound the problem, manufacturing in China is expected to contract at levels not seen since the global financial crisis, according to HSBC Holdings. With telling signs of a global economy ailing coupled with Fed officials lowering the GDP growth outlook for 2012, investors decided to move into the safety of U.S. Treasuries.
With money shifting into benchmark 10-year notes, let's take a look at the sectors experiencing heavy sell-offs.
It is no surprise that energy is taking a splash, as this sector is highly cyclical and its performance is closely aligned with economic growth. In the Dow, ExxonMobil
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Joel South owns shares of no company listed above. The Motley Fool owns shares of Qualcomm. Motley Fool newsletter services have recommended buying shares of Chevron. The Motley Fool has a disclosure policy.
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