Wall Street prepares for new sell-offs in US markets

Traders and analysts on Wall Street believe that the markets will soon move to new sell-offs. Last week, US markets again moved into intense sales. Investors are preparing for a new wave of sell-offs amid the risk of a recession and rising inflation.

Analysts from Wall Street banks are updating their forecasts based on the actions of the US Federal Reserve, which does not intend to ease the tight policy to combat inflation. All this indicates that the US Federal Reserve will continue to tighten measures to raise rates to combat high inflation. Last week, the interest rate was raised again by 75 bp.

Sam Stovall (strategist at CFRA Research) believes that the US market is beginning to experience a crisis of confidence. In the event that the S&P 500 index falls below the mid-June low in the near future, this could lead to a new aggressive wave of sales. In that case, the S&P 500 could well fall to 3,200, reflecting the average historical decline in bear markets during a recession. From September 19 to September 23, the S&P 500 fell 4.88% to close at 3,693.22. The NASDAQ Composite tech index, which fell 5.07% to 10,867.93 points, showed a slightly stronger fall.