MARKETS TODAY
Sept 26 (Vica Partners) – The S&P 500 down 1.08% as of 12:35 p.m. Eastern. The Dow Jones Industrial Average down 317 points, or 1.06%, to 29,276. The tech based Nasdaq down 0.44%. Losses so far have been broad based in the U.S. markets and included banks, energy, commodities, health care and tech.
The benchmark S&P 500 is down 7% in September.
The markets will test the index lows of S&P 500 at 3656 today. We still expect another 6.1% correction off that low, followed by a strong correction with index reversal around 3500.
The Dow Jones Industrial Average has dropped 320 points today, or 1.08%, and the index opened 29537 and will continue to test new lows.
Treasury yields today
- The yield on the 2-year Treasury, which tends to follow expectations for Federal Reserve action, rose to 4.27% from 4.21% late Friday. It is trading at its highest level since 2007.
- The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.79% from 3.69%.
Economic reports this week include…
Consumer spending, the jobs market and personal income
VERY IMPORTANT TO READ as Inflation will turn into deflation
The Federal Reserve will be forced to cut interest rates in 2023 if a deep recession occurs as the cure for inflation is not just raising rates. As we see a significant policy change coming by late Spring of 2023 with Powell reversing direction… just look at 12 month declining lower commodity pricing and new reports on rising retail inventories.
Yearly commodity prices continue to drop include: iron. Copper and crude oil
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 10-13% valuation correction for speculative stocks. DON’T try to time market lows!
*** 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 and will regain strength shortly
