WS #15461
The Reserve Bank of India raised its benchmark rate to 5.50%, marking the first hike since 2023, while US 10-year Treasury yields climbed to levels not seen since the dot-com era. This macro tightening is driving a broad selloff in growth and high-multiple stocks, with the Nasdaq and S&P 500 pulling back from all-time highs. Institutional investors are actively buying downside protection, evidenced by large block trades in SPX puts, signaling a defensive posture against persistent inflation and rising borrowing costs.
Macro Tightening and Rate Hikes
The Reserve Bank of India raised its benchmark rate to 5.50%, marking the first hike since 2023, while US 10-year Treasury yields climbed to levels not seen since the dot-com era. This macro tightening is driving a broad selloff in growth and high-multiple stocks, with the Nasdaq and S&P 500 pulling back from all-time highs. Institutional investors are actively buying downside protection, evidenced by large block trades in SPX puts, signaling a defensive posture against persistent inflation and rising borrowing costs.