Gundlach's Warning: Fed's Stance and Stocks to Watch

DoubleLine Capital CEO Jeffrey Gundlach has criticized the Federal Reserve's "higher for longer" stance on interest rates, stating that it has become a major challenge for the economy. Gundlach highlighted that the stock market has already reacted to this stance, and the recent increase in bond yields has further exacerbated the situation. He warned that if the 10-year Treasury yield surpasses 5%, it would be a significant shock. The surge in Treasury yields has negatively impacted major stock indexes, with the S&P 500, Dow, and Nasdaq all closing at their lowest levels in months. Gundlach also predicted economic weakness in the first half of next year and expects a rate cut during that period.