Last week was another difficult week for stocks and commodities, but it’s important to keep in mind that the S&P 500 is down only 3.5% from the record high last hit on Nov. 18th. While the Omicron variant gets most of the headlines as the reason for the drop, the hawkish pivot by the Federal Reserve may be the bigger reason for the market selloff of the past week.
Fed chair Jay Powell basically told the market to brace itself for an accelerated taper of the bond-buying program. The worry is an aggressive Fed in 2022 as growth and inflation start to slow.
For the week ahead, let’s keep an eye on volatility and market performance. Many pockets of the stock and commodity markets are oversold, so is there a bounce? With monthly options expiration on Dec. 17th, it wouldn’t surprise us if this market volatility sticks around for another couple of weeks. The key question is how do markets perform after the 17th and into the close of the year?
For a more detailed market report head on over to our Insights page. Where there are some of the key economic data points to be released this week. Also, subscribe to our YouTube channel and check out some of our other social media pages.
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Market Volatility Is Certainly Here 😕💰
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