S&P 500 is down 10% in 3 months; should Indian investors be worried?
Master Capital Services pointed out that a few important factors impacting the US markets are the US 10-year bond yield crossed 5 per cent on hawkish commentary by US Fed Chairman Powell hinting at more rate hikes to control inflation. "It is expected that there will be further rate hikes by the US Federal Reserve as inflation is still not in control. The US unemployment rate also spiked to 3.8 per cent in August, the highest since Feb 2022.
Non-farm payroll increased by 1.87 lakh. Wage growth slipped showing a slowdown in the US labour market due to pressure from interest rate hikes. We expect the US market to be pricing in recession by considering the above US economy numbers," said Nanda.
(Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link to stay updated with the latest financial insights! Click here!) As of now, there is no indication that the US economy is slowing down. The US economy grew at an annual rate of 4.9 per cent in the July to September quarter, according to the government's first estimate.
According to media reports, the US economy grew at the fastest pace in nearly two years, buoyed by a strong consumer in spite of higher interest rates, ongoing inflation pressures, and a variety of other domestic and global headwinds. Also Read: US GDP growth beats Street estimates, expands an annual rate of 4.9% in Q3 Abhishek Jain, Head of Research at Arihant Capital Markets said as of now, there is no clear evidence of an impending recession. "The US Retail Sales of Merchandise Inventories (ROMI) suggest strength.
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