Will Fed rate hike be a 'clearing event' for battered U.S. stock market? What investors are watching for on Wednesday

A little clarity from the Federal Reserve on the likely size and scope of future rate increases on Wednesday could be a balm for a bruised U.S. stock market, according to some analysts.

The meeting could set up as “yet another ‘clearing event,'” said Sherif Hamid, a strategist at Jefferies, in a note last week. The large-cap benchmark closed at its lowest since May 19 of last year, and the Dow Jones Industrial Average DJIA fell to its lowest close since March 14. The tech- and growth-oriented Nasdaq Composite COMP , already in a bear market, ended Friday at its lowest since Nov. 30, 2020.

If that scenario materializes, it “should not cause new selling in stocks simply because this is already priced into the S&P 500 at current levels,” wrote Tom Essaye, founder of Sevens Report Research, in a note. “Depending on other news, we could see a mild relief rally in the S&P 500 but I wouldn’t expect anything substantial unless there’s other good news on Ukraine or China lockdowns.”

They said the S&P 500 could fall as low as 3,460, the 200-week moving average, if forward 12-month earnings per share start to fall on margin and/or recession concerns.

Portugal Últimas Notícias, Portugal Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Jobs report, Fed decision, CVS earnings top week aheadFOX Business takes a look at the upcoming events that are likely to move financial markets in the coming days. want to see me without a bra?
Fonte: FoxBusiness - 🏆 458. / 53 Consulte Mais informação »

Fed ‘will determine the fate of the market’ — 5 things to know in Bitcoin this weekBitcoin is looking to move on from a historically bad April, but the U.S. Federal Reserve could determine its next direction. (Reporting via WilliamSuberg)
Fonte: Cointelegraph - 🏆 562. / 51 Consulte Mais informação »