The Chinese Central Bank cut interest rates for the second time in a week,fueling concerns about Chinese real estate and the ramifications of a larger slowdown there. Markets are worried about the economic situations in Europe and China. The Technology and Consumer Discretionary sectors led the declines as they lost more than 2.7% each. All the sectors of the index fell during today’s trading session. For today, the S&P 500 lost 2.14%, which was its worst day in two months, bringing the running tally to 4.3% from last week’s high. In related moves, Gold sank 0.85% and the euro depreciated to 0.9926.Īs we looked at last week, the bullish trend in the S&P 500 finally started to find sellers after re-engaging with the 200-day moving average. The negative sentiment has also been reflected in the US Treasury yield curve, as it showed rising yields across all maturities and gave the US dollar index (DXY) a drive to appreciate during the day. This comes after a strong rally had developed from June lows, apparently driven by the hope that the Fed may be nearing a point of pause or pivot in their rate hike strategy. Investors are looking ahead to tomorrow's PMIs and this week's Jackson Hole Economic Symposium, with Chair Powell scheduled to speak on Friday.Īt the close, the Dow dropped 1.91%, reaching the lowest level since June, and the Nasdaq fell 2.66%, touching levels not seen in three weeks. What is certain is that in the absence of major US data on the economic calendar, volatility has been increasing after the massive ramp in equities from the June low. The S&P 500 opened below the 50% Fibonacci retracement (or the 50% midpoint of the 2022 range).Risk aversion is calling into question whether last Friday's negative tone was just a breather or the start of something more. stock indices plunged after a negative opening gap today. Most Read: S&P 500, Nasdaq 100, Dow Jones Forecast for the Week Ahead
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