A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. Last week was a volatile one on Wall Street, with stocks falling after Federal Reserve chair Jerome Powell dashed the market’s dreams of a pivot and suggested that more big rate hikes are likely coming. But Investors are betting on a big Republican wave in the midterm elections.
Dent added that there’s also the unwelcome possibility of more bickering in Washington about the debt ceiling. The last time that was a major issue was during President Barack Obama’s first term. The US lost its prized perfect AAA credit rating from Standard & Poor’s as a result of the debt ceiling drama. The stock market plunged more than 5% after the downgrade happened in August 2011.