The rise in the S&P 500 this week was short-term

Posted by:Alex Belov Posted on:Oct 21,2022

This week the S&P 500 index showed growth. However, the growth was short lived. By the end of the week, the S&P 500 was under pressure due to the gloomy forecasts of the US Federal Reserve.

On Thursday, October 20, 2022, the main trading session in the US opened up 1%, but then US stocks reversed. Negative sentiment returned to the US stock market after Harker’s speech from the Fed. He reminded investors that the US Federal Reserve plans to raise interest rates to 4% by the end of 2022.

 Bank of America and other major representatives of the banking sector believe that the completion of the tightening cycle of the US Federal Reserve’s monetary policy will be completed by mid-2023. Let’s not forget that the US labor market is still strong: the number of applications for unemployment benefits has fallen again.

 As a result, the rebound, fueled by good reports from some companies, is likely to be short-lived. On November 2, 2022, the Fed meeting will take place, which should again bring down the markets, which means that the bottom is still far away.

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Alex Belov

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