US Wall Street More Concerned About Inflation Than COVID-19

37% of BoA Survey Respondents Cite Inflation as a Concern
"If US 10-Year Treasury Yield Rises to 2%, Stock Market Could Correct Down Over 10%"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] For the first time since the COVID-19 pandemic, Wall Street investors identified inflation as a bigger concern than COVID-19.

According to a survey conducted by Bank of America (BoA) from the 5th among 220 investors including asset managers, 37% of respondents named inflation as the biggest threat, CNBC reported on the 16th (local time).

Following that, the impact of the Federal Reserve's (Fed) tapering (reduction of asset purchases) ranked second at 35%.

The proportion of respondents who cited COVID-19 was less than 15%.

In this survey, which is conducted almost monthly, COVID-19, which had ranked first for about a year, fell to third place this time.

Respondents in this survey expected that if the U.S. 10-year Treasury yield rises to 2%, the stock market would experience a correction with a decline of more than 10%.

48% of respondents expected the U.S. economy to show a "V-shaped" recovery.

BoA explained that investor sentiment is clearly optimistic, but major investors are adjusting their portfolios.

Meanwhile, on March 16 last year, when the COVID-19 shock fully hit the stock market, the major indices of the New York stock market such as the Dow Jones Industrial Average (-12.93%), Standard & Poor's (S&P) 500 Index (-11.98%), and Nasdaq Index (-12.32%) showed the worst plunge since Black Monday in 1987.

This content was produced with the assistance of AI translation services.