Stocks face another turbulent week as the third quarter winds down

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After recent turbulence, markets are likely to close out the final week of the third quarter with another bout of volatility.

The debt ceiling is expected to be part of that debate, but strategists do not expect it to be resolved at the same time. They say this could hang over the markets for several weeks before Congress raises the debt ceiling.

"I think what the Fed's achieved so far is a taper without a tantrum," Bannockburn Global Forex chief market strategist Marc Chandler said. Chandler said the market will need to digest the recent moves, particularly the move higher in Treasury yields. The Fed is expected to taper its $120 billion monthly bond purchases unless there is shockingly weak employment data. "That is the only thing that stands in the way of Fed tapering," Chandler said.

 

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