(As of 7:25 am PST)
Yesterday's rally was short lived, as stock market indexes erased most of yesterday's gains at the open with the Dow shedding nearly 200 points while the S&P500 and Nasdaq down 1% as well. Fears of an imminent Fed rate hike were driving the selling early with yesterday's brief "relief rally" already a distant memory. A surging dollar is causing commodity prices to weaken across the board, with money flowing out of stocks and precious metals and into treasuries sending yields down to 2.13% on the 10 yr. Overseas, stocks are selling off with Asian indexes closing in the red, while European equities are being pressured a day after the start of the European Central Bank's QE program. The stimulus package, much similar to the QE program just completed in the US, has sent European sovereign debt yields lower as well. Fears of a Fed rate hike and the complications of diverging economic and monetary conditions around the globe remain the main story line for investors in 2015. Expect volatility to stick around as these important macro events unfold.
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