This week in the markets
- Most major US stock markets took a tumble Thursday as investors became nervous over a rise in the 10-year US Treasury Bond yield.
- Canada decided to join the United States-Mexico-Canada Trade Agreement this week after months of trade war.
- Facebook had its worst data breach ever, with hackers getting access to 50 million user accounts, and may face a $1.6 billion fine.
US stock markets declined after troubling bond news
Investors seemed to get jitters over a rise in bond yields, which on Thursday caused both the Standard & Poor’s 500 Index (S&P 500) and the Dow Jones Industrial Average (DJIA) to have their worst sessions since late June. But rest assured, when we look at market highs and lows historically, the overall market has always continued to rise over the long haul. It's important to stay focused on your long-term goals.
Investors have been dumping bonds due to the continued strength of the US economy. In response, bond yields on the 10-year US Treasury note rose to 3.2% (their highest since 2011), making them more attractive to investors. This may have caused a sell-off on US stocks because some bonds are now giving a higher return and are still less volatile than some stocks.
Canada signed United States-Canada-Mexico Trade Agreement
After months of negotiations, Canada officially joined a new trade agreement with the US and Mexico. The new deal will replace The North American Free Trade Agreement (NAFTA) following months of trade tariffs imposed by the United States on steel and aluminum imports from Mexico and Canada. President Trump said in an announcement this week that he would continue to impose a 25% tariff on steel imports and a 10% tariff on aluminum imports from Mexico and Canada “until we can do something so our steel industry is protected.”
Facebook had its worst security breach yet
Just when you thought it couldn’t get any worse for the social media giant, Facebook had yet another security breach. This time it was even worse than past data breaches they’ve had, with hackers obtaining login access to as many as 50 million accounts. Facebook’s stock tumbled 9% between Monday and Tuesday after news was released, and the company may now face up to $1.6 billion in fines from regulators.
And now for your weekly Lionomics wrap-up. 🤓
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