The Fed, not the trade war, may cause a new correction for US indices

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.

Source: CNBC

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance