Shares of banks and financial institutions experienced a decline due to concerns surrounding Chinese property developers. The top surviving privately run developer in China, Country Garden Holdings, is on the verge of default, a situation that investors are worried could have a significant impact on the Chinese economy.
Impact of Rising Treasury Yields on Stocks
The recent selloff in U.S. stocks may be attributed to the increasing Treasury yields on medium-term bonds, according to a strategist. Despite better-than-forecast earnings, stock prices have dropped, indicating a “multiple contraction,” as stated by J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
Joyce raises the question of whether the decrease in multiples is due to the sudden surge in medium-term interest rates or simply a result of the summer lull, with many individuals taking their final vacations before the start of the school year.
PayPal Finds New Leadership
After an extensive search, PayPal Holdings has chosen Alex Chriss, an executive from Intuit, to serve as its next president and chief executive officer. This appointment concludes a months-long process of finding a suitable leader for the company.
UBS Settles Allegations
Swiss bank UBS has agreed to pay $1.44 billion to settle allegations that it provided false information to investors regarding the quality of mortgage-backed securities purchased during the 2006 and 2007 period leading up to the financial crisis.