Stocks in line for fourth day of losses amid Fed hiking gloom

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Trading was expected to be somewhat thinned by the Columbus and Indigenous People's Day holiday, which closed the Treasury market.

U.S. stock futures pointed to a fourth day of declines on Monday as worries about Fed rate rises persisted.

What’s driving markets U.S. stocks were in line for a fourth consecutive session of losses as concerns about additional interest rate rises by the Federal Reserve continued to dampen sentiment. The 5-day round trip saw an average move for the S&P 500 of 1.9%. Little surprise then that the CBOE Vix index VIX , a gauge of expected S&P 500 volatility, sat on Monday at 31.4, more than 50% above its long term average of 20.

“The total stock allocation is still 63.4%. The spread between the stock allocation and % bulls is ~36%. This compares to -7% at the 2002 lows and ~3% at the 2009 lows,” Krinsky wrote in a note to clients.

 

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Pay close attention to community activity at this point in the markets. Here are the current top 10 stocks by social mentions over the past week: 1️⃣ $tsla 2️⃣ $pypl 3️⃣ $aapl 4️⃣ $o 5️⃣ $msft 6️⃣ $amzn 7️⃣ $amd 8️⃣ $twtr 9️⃣ $googl 🔟 $nvda Social insights:

Expect a strong market rally across all boards

This is actually agood thing for the long run health of the economy. We have lived through an unusually speculative time with everything from stocks, bonds, housing being overvalued along with new 'assets' of NFTs, cryptos. We need to get 'back to basics' with a major correction.

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Source: WSJ - 🏆 98. / 63 Read more »