Fed-wary investors: An increasing number of uncertainties, including the Federal Reserve’s hawkish posture, rising Treasury rates, and a potential government shutdown, have alarmed investors and clouded the outlook for U.S. equities. An increasing number of uncertainties, including the Federal Reserve’s hawkish posture, rising Treasury rates, and a potential government shutdown, have alarmed investors and clouded the outlook for U.S. equities.
An increasing number of uncertainties, including the Federal Reserve’s hawkish posture, rising Treasury rates, and a potential government shutdown, have alarmed investors and clouded the outlook for U.S. equities. An increasing number of uncertainties, including the Federal Reserve’s hawkish posture, rising Treasury rates, and a potential government shutdown, have alarmed investors and clouded the outlook for U.S. equities. if lawmakers are unable to approve a budget by September 30th, that is scheduled to start. In the near future, seasonal conditions also appear to be unfavorable. On September 1, the S&P 500 began what has historically been its worst 10-day period of the year. – Fed-wary investors
18 is the BofA Global Research’s estimate. When performance in the first 10 days of the month is below normal, as it has been this year, the index historically declined by 1.66% over that time.
The analysts at BoFA added, “Seasonality shows nasty down days into October,” adding that falls can present opportunities for dip buyers. A protracted government shutdown, meanwhile, might fuel worries about American government dysfunction and raise Treasury yields. Legislators fought for a long time to lift the debt ceiling at the start of this year. Fitch, a credit rating agency, downgraded the company as a result, according to analysts at Societe Generale.
As yields have risen over the past few weeks, stocks have struggled, and higher yields might make things worse.
