Wall Street has been waiting all year for the rest of the U.S. stock market to catch up to outsize gains seen in highflying technology names that drove much of this year’s rally in equities.
But since the beginning of September, technology stocks have slumped, with the S&P 500 information technology sector having lost more than 7% through Thursday’s close, as stock market losses have accelerated this week. At the same time, defensive utilities stocks and cyclical energy stocks are the month’s best performers, after lagging for much of 2023.
Value stocks XX:RUJ and defensives, on the other hand, have largely sat out this year’s rally, boosting hopes that a rotation already starting to take place in a couple of sectors could soon broaden out, pushing small-caps and sectors like industrials and consumer staples, higher. Seasonal upswing? Market strategists said there are promising signs that the major stock-market themes that have defined much of 2023 could shift in the fourth quarter, which begins Oct. 1. A similar dynamic played out last year after the S&P 500 hit its closing low for the year in the first half of October.
The Fed on Wednesday provided an update to its forecast for interest rates, indicating it could keep its policy rate above 5% through the end of 2024, and possibly longer. The central bank also raised its forecasts for GDP growth, although Powell also said a “soft landing” for the U.S. economy could be tricky, if rates remain higher for longer.
Belgique Dernières Nouvelles, Belgique Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
La source: AP - 🏆 728. / 51 Lire la suite »