Stock Market Sell-Off: Yardeni Research Predicts More Volatility Ahead

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Stock Market Sell-Off: Yardeni Research Predicts More Volatility Ahead
Stock Market,Federal Reserve,Volatility

The stock market experienced a sharp decline following the Federal Reserve's disappointing rate-cut outlook. Yardeni Research warns investors of further potential volatility in early 2024 due to anticipated capital gains tax deferral by investors and other factors like a possible dockworkers strike and President Trump's trade policy.

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The stock market suffered a violent sell-off Wednesday after the Federal Reserve's disappointing rate-cut outlook, and Yardeni Research is telling clients to buckle up as the worst is yet to come. First, the Wall Street firm believes that early January could see big selling action from investors who opt to defer their capital gains to next year, effectively pushing their tax bill in 2026 from 2025.

0, a blizzard of executive orders will likely include a bunch imposing tariffs and authorizing deportation of illegal migrants." .SPX YTD mountain S & P 500 Investors have been especialy worried about Trump's protectionist trade policy, which could make producing goods more expensive and raise consumer prices, just as the Fed struggles to control inflation. Because of these risks, Yardeni believes there is a chance for a 10% market pullback in the bull market.

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