Investors are worried about Trump’s commercial policy. The Fed raised interest rates on June 13, Dow fell by more than 1,000 points, while the S & P 500 declined by 2%.
“We think there will be more instability and there will certainly be a 5 to 10 percent correction,” said Chad Morganlander portfolio manager, Trading Nation.
“We believe they will raise the interest rate twice more in 2018 and maybe once or twice in 2019,” he said.
Technical indicators indicate a fall in the stock market, according to Craig Johnson, chief market technician at Piper Jaffray.
“That the Dow fell below 200 SMA, according to Johnson, will not have a major impact on the index.” The index is consolidating throughout the year, “he said.
Yesterday Dow fell 0.54% to 24 174.82 points. The big reason for this is Apple’s depreciation of more than 1.5%. The S & P 500 ended with a decline of 0.49% to 2713.22 points as the technology sector dropped by 1.4%. Nasdaq composite declined by as much as 1% due to Micron’s and Facebook’s decline of 5.5% and 2.4%, respectively.