The Stock Market Is Charting a New Course. It Won’t Be Pleasant.

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Delta Air Lines told investors that revenue would finally return to 2019 levels, amid strong travel demand.

Brandon Bell/Getty Images

The trend is your friend, or so they say. But right now, there is no trend you can trust.

Consider the stock market this past holiday-shortened week. Through the first three days of trading, the

S&P 500
index looked like it was going to be able to start a winning streak after breaking a seven-day losing streak the week before. Instead, it finished down 1.2%. The

Nasdaq Composite,
which closed off 1%, and the

Dow Jones Industrial Average,
which fell 0.9%, followed similar trajectories.

It’s not just the stock indexes that failed to follow the trend—bond yields did, too. The 10-year yield looked like it was heading lower after trading at 3.13% on May 6. But after closing at 2.748% on May 27, it rose back to 2.955% on Friday after a stronger-than-expected jobs report suggested that recession fears might be overblown.

“The growth scare that brought 10-year Treasury yields down from touching 3%” is easing “as the labor market remains solid,” explains Quincy Krosby, chief equity strategist at LPL Financial. That’s helping yields rise again.

It’s no easier finding a trend in U.S. businesses.

Microsoft

(ticker: MSFT) cut its outlook, blaming the strong dollar, while

Delta Air Lines

(DAL) told investors that revenue would finally return to 2019 levels, amid strong travel demand.

Tesla

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