AgenciesThe stock market continued to fall on Monday morning after a short respite due to investors’ anticipation of the Federal Reserve rate decision expected on Wednesday. The sectors that were the worst performers were health care, energy, and real estate.
What is the impact of the stock market's fall?
How has the market performed in the recent past?
Of the last five weeks, the Nasdaq has seen a downturn in four. However, it is expected that dip buyers may be attracted by the close to oversold technical climate. While almost approaching the 200-day moving average, the index went into a deeper fall, well below its main moving averages. Overall, in 2022, it fell by almost 28%.
The S&P 500 has also fallen in the last week, and it is now 5.5% lower than its 50-day moving average. While short-term bulls may see this as a good thing leading up to the decision on the market-moving rate later in the week, it may be wiser to wait for the setups to attain more ideal buy points before making a move.
What can we expect?
It is reported that analysts have reduced their third-quarter earnings forecast by 5.5% from June 30, which may result in the biggest fall in earnings since 2020’s second quarter. It has been seen that the markets have justified a 75-basis point hike as an anti-inflation measure. However, investors’ estimates are skewed 80 percent toward the likelihood of a 75-basis-point hike, as opposed to a 20% chance of rates increasing by a percentage point.
How has the long awaited decision impacted the markets?
The National Association of Home Builders index has decreased from its August level of 49 to a September level of 46, indicating that real estate equities have also suffered.
What is the impact of the stock market's fall?
How has the market performed in the recent past?
Of the last five weeks, the Nasdaq has seen a downturn in four. However, it is expected that dip buyers may be attracted by the close to oversold technical climate. While almost approaching the 200-day moving average, the index went into a deeper fall, well below its main moving averages. Overall, in 2022, it fell by almost 28%.
The S&P 500 has also fallen in the last week, and it is now 5.5% lower than its 50-day moving average. While short-term bulls may see this as a good thing leading up to the decision on the market-moving rate later in the week, it may be wiser to wait for the setups to attain more ideal buy points before making a move.
What can we expect?
It is reported that analysts have reduced their third-quarter earnings forecast by 5.5% from June 30, which may result in the biggest fall in earnings since 2020’s second quarter. It has been seen that the markets have justified a 75-basis point hike as an anti-inflation measure. However, investors’ estimates are skewed 80 percent toward the likelihood of a 75-basis-point hike, as opposed to a 20% chance of rates increasing by a percentage point.
How has the long awaited decision impacted the markets?
The National Association of Home Builders index has decreased from its August level of 49 to a September level of 46, indicating that real estate equities have also suffered.
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