Is a Recession Around the Corner? The Bond Market Thinks So, but Stock Market Says No.

Stocks were strong across all sectors of the market today, lifting the Entrepreneur Index™

learn more about Andrew Osterland

By Andrew Osterland

Photographer is my life | Getty Images

Opinions expressed by Entrepreneur contributors are their own.

The yield spread between the three-month Treasury bill and 10-year Treasury bond fell below seven basis points -- or 0.07 percent -- today. When long-term interest rates fall below short-term rates, causing an inverted yield curve, it's one of the surest signs of an economic slowdown and possible recession on the horizon.

The stock market, however, shrugged off the bearish signal from the bond market. The major stock indexes posted strong gains today. The Dow and S&P 500 indexes rose 0.84 percent and 1.09 percent respectively, while the Nasdaq Composite index was up 1.42 percent. The Entrepreneur Index™ posted a gain of 1.19 percent with just four stocks of sixty on the index losing ground on the day.

NVIDIA Corp. had the biggest gain on the Entrepreneur Index™, rising 5.47 percent. The maker of graphics chips was up sharply along with the rest of the semiconductor sector as memory chip giant Micron Technology beat earnings estimates yesterday with financial results. Micron also predicted a recovery in the market for memory chips this year. Other tech stocks posting good gains included fellow chip-maker Analog Devices, up 1.45 percent, software maker salesforce.com, up 2.1 percent and Adobe Systems Inc., up 1.72 percent.

Stock prices were strong across the market. Fedex Corp. (2.24 percent) was up smartly after posting the biggest loss (-3.49 percent) on the Entrepreneur Index™ yesterday. Foodmakers Tyson Foods and J.M. Smucker Company were up 2.53 percent and 4.22 percent respectively. Homebuilder D.R. Horton Inc. gained 3.39 percent, helped by the continuing decline in mortgage rates that track the 10-year Treasury bond yield.

The recent fall in interest rates is also helping REITs. All nine REITs on the index were up today with Kimco Realty Corp. (2.66 percent) and Simon Property Group (2.44 percent) both focused on shopping center and mall properties, posting the biggest gains. Another shopping center REIT, Macerich Company was also up 2.1 percent.

Other notable gains on the index today included Wynn Resorts (2.54 percent), O'Reilly Auto Parts (2.43 percent), Ford Motor Co. (2.12 percent) and Verisign Inc. (1.94 percent).

Only four stocks on the Entrepreneur Index™ declined today. Gap Inc., down 0.83 percent, fell the furthest. Regeneron Pharmaceuticals and Jefferies Financial Group were also down 0.72 percent and 0.47 percent respectively. Capital One Financial ended the day with a small 0.07 percent loss.

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.

Andrew Osterland

Andrew Osterland is a contributing writer for CNBC.com. He specializes in capital markets, personal finance and taxes.

Related Topics

Editor's Pick

Have More Responsibilities at Work, But No Pay Bump? Use This Script to Get the Raise You Deserve.
Black and Asian Founders Face Opposition at All Levels — Here's Why That Has to Change
Marketing

This Is the Overlooked Tool Your Business Needs to Reach Your Target Audience

Voice search is growing, and your business can utilize this important functionality to get more customers. Here's how.

Business News

This OnlyFans Star Was Once Part of a Fanatical MLM Cult. "I Was Forced Into Celibacy."

Cami Strella was lured into a multilevel marketing scheme but escaped to start her own six-figure-a-month business.

Business News

'Our Kids Aren't Even Safe To Order Food': Mother Outraged After DoorDash Employee Uses App to Flirt With Teen Daughter

One mom is going viral on TikTok after catching a DoorDash employee attempting to flirt with her 15-year-old daughter through the messaging service provided through the platform.

Thought Leaders

5 Small Daily Habits Self-Made Millionaires Use to Grow Their Wealth

We've all seen what self-made millionaires look like on TV, but it's a lot more subtle than that. Brian Tracy researched what small daily habits these successful entrepreneurs adopted on their journey from rags to riches.

Business News

The AI Wars Have Begun: Microsoft Announces ChatGPT Bing Integration After Google Introduces AI Competitor, Bard

ChatGPT proved to be an accelerant for large companies releasing their own versions of AI-powered search bots.