(TheRedAlertNews.com) – HAPPENING NOW: With interest rates and inflation rising, the last thing Americans need is a volatile stock market — but a volatile stock market is here after wild swings the last two days.
And today is no different.
As Yahoo Finance is reporting:
“The surge in stocks that followed the Federal Reserve decision proved short lived, with traders worried that officials could struggle to fight persistently high inflation amid the lingering threat of a recession.
“Just a day after notching its biggest rally in about two years, the S&P 500 headed toward its worst session since June 2020 — with 97% of its companies moving down. The technology-heavy Nasdaq 100 tumbled 5%. The dollar climbed. A selloff in long-end Treasuries pushed yields to multi-year highs, with the 10-year rate jumping above 3%.” [emphasis added]
And as one expert commented:
“It’s going to be incredibly difficult for the Fed to normalize interest rates without having a negative impact on growth and earnings,” said Paul Nolte, portfolio manager at Kingsview Investment Management. “So stock prices are too high if we’re going to see a flattening or a decline in earnings per share.” [emphasis added]
Is the United States headed for a recession after a first quarter with negative growth? The majority of financial advisors who have gone on record believe a significant recession is highly likely, especially as the Federal Reserve continues to push interest rates higher in an attempt to bring historic inflation under control.
For a live look at the markets, please click HERE.
This is a breaking news report from Red Amert News.