Dow Jones, Nasdaq, S&P 500 weekly preview: More room for correction in October
The S&P 500 (SPX) recorded the fourth consecutive weekly drop candle after falling 0.7% last week. The index printed the lowest level since the end of May as stocks responded to another bond market selloff.
The Nasdaq Composite Index (IXIC) ended the week flat, despite also plunging below 13000 for the first time in 4 months. Finally, the Dow Jones Industrial Average (DJI) index fell as much as 1.3% after testing an important daily support in the context of the 100 daily moving average.
“We're not surprised by the message that the policy rate may stay higher for longer. However, we're also not convinced the Fed will have to do much more tightening at this stage. Instead, it's time, not further rate hikes, that is needed to see inflation moderate back toward the target. In other words, it may be more bark than bite from here. In any event, that bark has sent rates higher and stocks lower, a reaction that we think may be creating an opportunity,” investment strategists at Edward Jones said.
Q4 is Here
Traders are entering the final quarter of 2023 with a focus on economic releases that could set the tone for the rest of the year. While they hope for positive data, the central bank narrative remains crucial, especially in the context of ongoing efforts to control inflation.
Treasury yields are playing a pivotal role in shaping market sentiment, and there is a wealth of U.S. economic data to analyze. Key reports such as the ISM index, ADP employment figures, U.S. Factory Orders, Non-Farm Payrolls, and hourly earnings will be closely scrutinized to validate the Federal Reserve's hawkish stance.
Recent data has indicated a slowdown in U.S. consumption, and the surge in oil prices is expected to have an impact.
This week will
Read more on investing.com
