MARKETS TODAY @3 PM EST
Sept 20 (Vica Partners) Dow down 1.40%, S&P 500 down 1.37%, Nasdaq down 1.10%
Stocks continue to drop today as bond yields hit new highs ahead of Wednesday’s interest-rate decision from the Federal Reserve. Odds for a 75 basis-point hike have risen to 86% on the, while 14% are looking for a full percentage-point hike. Traders have priced in small chance of 100 bps rate hike
So the Fed has to force a recession to get inflation under control?
Recession or not, monetary tightening is expected to continue into 2023 with the S&P 500 coming into Tuesday’s open down 9.2% from the mid-August summer rally.
Other key market happenings today …
- The 2-year Treasury yield, has risen to 3.967%, while the 10-year yield, used longer-term inflation expectations, has risen to 3.573%. It’s important to note when foreign yields rise, it often forces rates in the higher-yielding U.S. market higher.
- West Texas Intermediate crude oil has fallen than 1.8% to $84.19 per barrel
- Bitcoin is has fallen below $18,980
- Ford Motor Co (F.N) shares declined today more than 12%, a day after the automaker said inflation-related costs would be $1 billion more than expected in the current quarter and that parts shortages had delayed deliveries.
What to expect following Fed interest rate action this week
Look for late week market upside to offset interest fears with 75 basis-point hike.
Solid strategy for these type of market days ….
We suggest investing in companies that have solid balance sheets and offer dividends.
Best to continue to cost average buy value stocks and resist most all tech and growth stocks where companies have negative margins. Our Teams forecast a negative 12%-15% valuation correction for speculative stocks.
*** Look to Index ETF’s like SPY to outperform stocks and most managed funds
*** Energy is the Top Performing Sector in S&P 500 Year to Date
