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Look for more selling pressure next week
#1
Look for more selling pressure next week as investors learn the hard way not to fight the Fed
  • The S&P 500 posted its 10th down week in the last 11. The index is now well into a bear market.
  • Bank of America global economist Ethan Harris described the U.S. economy as β€œone revision away from recession.”
  • Federal Reserve Chair Jerome Powell will be in the hot seat again next week, as he returns to Capitol Hill to testify before both houses of Congress.

[Image: 106911403-1626357900954-powell.jpg?v=162...&ffmt=webp]


Wall Street and the Federal Reserve appeared to enter a new reality this week, and the result for investors was big losses with no obvious end point in sight.

The S&P 500 posted its 10th down week in the last 11, and is now well into a bear market. On Thursday, all 11 of its sectors closed more than 10% below their recent highs. The Dow Jones Industrial Average fell below 30,000 for the first time since January 2021 this past week.

Unlike recent drawdowns for stocks, however, the central bank will not be putting a bottom in the market. Instead, the Fed raised interest rates by three-quarters of a percentage point on Wednesday β€” its biggest since 1994 β€” and signaled continued tightening ahead. Chair Jerome Powell will testify before Congress next week and is expected to hold firm on his plan for a more aggressive Fed until inflation is brought to heel.

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Look for more selling pressure next week - by superadmin - 06-19-2022, 06:01 PM

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