The September market swoon accomplished most of what corrections are supposed to do

as much as 14%, relieved grossly overextended conditions in mega-cap tech shares, punctured investor overconfidence and showed newcomers to trading that stocks don't always go up.If all that was needed after the racy summer rally was to unwind extreme chart readings and sow some self-doubt in bullish investors, it's not clear much more of a decline is necessary.

These are hints that the pullback is maturing, even if it isn't quite the case that the market is truly washed out or investor sentiment decisively pessimistic.The National Association of Active Investment Managers equity-exposure index has dropped from a multi-year high above 100 on Aug. 26 down into the 50s last week, a roughly neutral reading.

The weakness helpfully broadened last week beyond the Nasdaq giants and overheated speculative tech plays — in fact, the Nasdaq nicely outperformed last week after leading the tape up in August and down in the first half of September. This is probably another plus.

For most of the month, credit markets remained firm and Treasury yields almost static, which argued against a fresh buildup of economic stress reflected in the equity weakness. That said, market-based inflation expectations have slipped, the dollar rallied, which can be read as investor doubt in the Federal Reserve's ability to get inflation to its new, higher target and drive faster nominal growth.

Btmfd

Then, I guess, well done Market!

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Dow Rallies 350 Points, But Stocks Are Down For A Fourth Week In A RowThe Dow rallied 350 points today, but stocks are down for a 4th week in a row by skleb1234 skleb1234 Get me a job. I'll do it well. skleb1234 It doesn’t matter how much money you injected to this economy we are done nothing can save us for the inflation and next year would be worst!!!!! skleb1234 The Little Comfort Mankind has here on Earth will Vanish after RAPTURE; just Prepare in Holiness for Safety in HEAVEN. 인류가 이 땅에서 누리는 약간의 안락함은 휴거 이후에 사라져버릴 것입니다; 천국에서의 안전함을 위해 거룩함으로 그저 준비하십시오.
Source: Forbes - 🏆 394. / 53 Read more »

Secretive data-miner Palantir could fetch a $22 billion price-tag at its market debut next week, WSJ says | Markets InsiderArnd Wiegmann/Reuters Palantir, the secretive technology firm, could fetch a $22 billion price-tag at its planned market debut on September 30... PAF, rats. Open or it's a slavery machine.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Cramer says the stock market looks bad recently but that's OK: 'We're churning to find a bottom'CNBC's Jim Cramer reminded investors Friday that September is a historically difficult month for stocks. Everyone wants a correction when they are still green YTD 'Churn to earn' Lmao fuck Cramer.
Source: CNBC - 🏆 12. / 72 Read more »

S&P 500 erases 2020 gains, tumbles into correction as economic worries mount - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Feeling it. 🙃 Really, the Dow was 19,000 when Trump took over from the Obama administration, that’s the real story. Booming economy.
Source: BusinessInsider - 🏆 729. / 51 Read more »