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Three themes: two year lows, gas 'attacks' & consumer confidence rises

Three themes for the open

27 Sep 2022

Slatestone Wealth's Kenny Polcari joins us to wrap the eventful US session which saw the S&P500 end at two year lows. So, is there a Santa Clause rally likely? Kenny has his doubts, considering how aggressive the US Fed will be. Just look at the consumer confidence data; it rose despite rising mortgage rates. Wall Street sank deeper into a bear market on Tuesday, with the S&P 500 hitting a two-year intraday low as Federal Reserve policymakers showed an appetite for more interest rate hikes, even at the risk of throwing the economy into a downturn.With the Fed signaling last week that high interest rates could last through 2023, the benchmark S&P 500 erased the last of its gains from a summer rally and touched lows last seen in late November 2020. On Tuesday, St. Louis Fed President James Bullard made a case for more rate hikes, while Chicago Fed President Charles Evans said the central bank will need to raise rates by at least another percentage point this year. With Tuesday's drop, the S&P 500 is down 24% from its record high close on January 3rd. Microsoft (MSFT) and Google-parent Alphabet (GOOGL) each lost just over 1% and weighed heavily on the S&P 500. Tesla also rose about 1%, with $13 billion worth of its shares exchanged, more than any other company on Wall Street.

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