Credit markets, though, have stayed relatively steady against the equity-market tremors, which arguably would not be the case if the market were undergoing a bout of stress over Covid shutdowns smothering the economic recovery.
Such a rethink certainly could be yet to come, of course. There was plenty of dissonance in the market messages last month. The ongoing, two-month retrenchment in mega-cap tech stocks seems in part related to a sense that they have pulled forward demand during the Covid hunker-down quarters. Netflix and Facebook said as much. Meantime, Microsoft, SAP and Amazon hinted at slower business spending on tech services.
The election, of course, is on everyone's mind yet it's hard to find something smart to say about its likely immediate impact on markets – except to sow hesitancy and headline-sensitivity in the preceding days.And, fittingly, the market finished last week in a way to maximize the ambiguity. The S&P 500 broke down below the 3400 level it had barely held the week before, which dropped it back into the September correction zone and had every trader watching 3230 as a decisive level.
Still, these moves don't always rush to the "What if?" extremes, certainly not always in a straight line.
tbell1968 The big wall street firms prefer Biden to be elected.Why?The markets like stability not trumps unpredictability.Also ignoring Covid crisis is going to be a big drag on the economy and Biden is much more likely to deal with it like an adult.Meanwhile buy the dip and relax.
Biden will lock down the economy, raise gas prices, raise cap gains to 40%, raise corporate taxes, and send jobs overseas. all the while CNBC pushes 'Buy and Biden Presidency' as a pump and dump for their WALL ST buddies like they did during the crash
Fall more!! The buys are getting truly exceptional
CrookedJoeBiden
wow
Stop fear mongering! Vote Trump!!!