Sp 500
The S&P500 and Nasdaq dived 4% before reversing losses and closing the session in the green. But yesterday’s rebound doesn’t mean the equity markets are out of the woods just yet. On the contrary, the rising volatility hints at further market turbulence ahead, as investors are worried about the Fed tightening, the Ukrainian war threat, and some unachieved goals on Biden’s political agenda as the Build Back Better & Chinese trade deficit.
The FOMC starts its two-day meeting today, yet given the bloodbath in equity markets, the policymakers could refrain from reviving the Fed hawks.
But even with an eventually softer Fed statement, and some market correction, there is a slim chance we see meme stocks, SPAC deals, or highly speculative names doing well in an environment of tighter Fed liquidity. There is, on the other hand, a better chance for companies like Apple and Microsoft to navigate through a high turbulence market.
So, the Fed tightening will certainly support the reflati
Swissquote Bank 25.01.2022 14:19
