Widening credit spreads around the world are a sign that how stocks are valued may be changing, for the worse Interest rates are increasing around the world. /iStockphoto If central banks are going to succeed in bringing inflation back to target, financial conditions will have to tighten. The problem for investors is that, while conditions remain remarkably loose enough that stocks are climbing despite several concerns, some markets suggest that is about to change. Financial conditions eased considerably after peaking in late 2022 and early 2023, as interest rates fell and credit spreads tightened materially — not just in the U.S., but globally.
However, early signs suggest this is changing. As central banks start tightening policy, sovereign and credit spreads should begin to widen. Copyright ©2026 MarketWatch, Inc.
All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 How this market-beating fund is constantly shifting to keep up with the AI trade Oil could top $150 a barrel if supplies further tighten, Bank of America warns My husband and I are in our 50s and have no kids. We have $2 million in IRAs and 401(k)s. Do we really need a will?
What's next for SpaceX as more shares enter the market and capex jumps ‘She says it’s just money’: My friend pays for everything. I should be grateful, but I can’t stand her anymore. Michael Krameris the founder of Mott Capital Management and a long-only investor focused on macro themes.
A former buy-side trader, analyst and portfolio manager with more than 30 years of experience, he analyzes long-term macro trends and short-term market risk using technical analysis, fundamentals and options-market positioning. Intraday Data provided by FACTSET and subject to terms of use. Historical and current end-of-day data provided by FACTSET.
All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.
Extract — continue reading at the source.
