Wall Street falls for the third day in a row, driven by the energy and health sectors

Wall Street falls for the third day in a row, driven by the energy and health sectors

The S&P 500 and Nasdaq posted their worst weekly percentage decline since June on Friday, As the markets are fully priced with a price hike of at least 75 basis points during the week, Fed fund futures show a 21% chance of reaching 100 basis points. a plus.

The Unexpectedly High Inflation Data for August Last week, he also raised bets on a future rate hike, With a final interest rate for US Federal Reserve funds now at 4.5%.

โ€œMarkets will be looking for direction until the Fed meeting, and there won’t be much trading action until then,โ€ said Christopher Grisanti, chief equity strategist at MAI Capital Management in Cleveland.

The S&P 500 has lost 19% so far this year due to concerns about a central bank-induced recession amid recent warnings about slowing demand from delivery company FedEx and an inverted US Treasury yield curve.

I think a recession is very likely. Grisanti said the Fed sees recession as unfortunate but necessary to fight inflation.

for this part, CBOE Volatility Indexalso known as Wall Street Fear IndexAnd the Increased to 27 pointsAnd the Slowly approaching over two months max.

in this context , Goldman Sachs cut its forecast for US GDP for 2023 late Friday, It expects the Fed to be more aggressive and sees the unemployment rate rising more than it previously expected.

โ€œWe believe a 100 basis point increase will upset Wall Street… and increase the likelihood that the FOMC will narrow a lot eventually and reduce the chance of an easy landing,โ€ wrote Sam Stovall, chief investment analyst at CFRA. note.

READ ALSO :   What has happened to Tesla's stock price since the last day of AI?

and the S&P . Index It did not record new highs in 52 weeks and 18 new lows, while Nasdaq It recorded 13 new highs and 178 new lows.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

The Latest

To Top