How Recent Bearish Sentiment Will Impact the Stock Market By StockNews

© Reuters. How Recent Bearish Sentiment Will Impact the Stock Market

Last week, the S&P 500 (SPY) fell during a short trading week. Multiple factors were weighing on investor sentiment. First was September’s history for being a weaker month for stock performance. In addition, the previous week’s August payrolls miss seemed to linger on investors’ minds due to concerns that the delta variant of COVID was slowing the rebound in the economy. The real estate sector led declines as long-term interest rates increased. Consumer staples and utility stocks performed the best. In terms of market cap, the small-cap Index underperformed the market after two strong weeks of outperforming the larger benchmarks. Growth stocks also outperformed Value stocks. I’ll discuss this and more below….(Please enjoy this updated version of my weekly commentary published September 15, 2021 from the POWR Value newsletter).

Five of the last seven trading days have been in the red. While I don’t believe we are headed for a bear market, there’s no question of bearish sentiment. Last week, we saw four straight days of losses. In addition to the August payrolls miss, investors were also concerned about political uncertainty. In previous weeks, it was monetary policy that was front and center.

Now, there is a concern over fiscal policy and the infrastructure bill. We learned last Wednesday that Senator Joe Manchin only backs $1 trillion of President Biden’s $3.5 trillion proposed spending plan. It’s my belief that the Street is counting on this package, and it doesn’t go through; we could see heightened volatility.

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here