This is why S&P 500 could pull back in June: strategists
Broker-dealer Strategas Research said in a Wednesday report it expects a $130 billion liquidity drag beginning in late May and lasting through June, which could contribute to stricter financial conditions. The drain, according to the firm, is anticipated due to a mix of factors, including changes in the Federal Reserve's balance sheet and increased T-bill issuance.
Moreover, Strategas pointed out the potential impact of upcoming Treasury actions. Starting in July, there will be a large increase in T-bill issuance, funded through money market funds parked in Reverse Repos. Historical trends also support the likelihood of a pullback, with the S&P 500 witnessing similar patterns in past election years. Still, strategists remain optimistic about the overall market trajectory for 2024, driven by anticipated economic stimulus and infrastructure spending.
“We see more risk in 2025 than 2024 as the hangover from this easing, the stickiness of inflation, and the fiscal cliffs comes to fruition.”Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
2024 Indy 500 Blog: Josef Newgarden wins the 108th Running of the Indianapolis 500Heavy rain Sunday morning caused a delay in the start of the 108th Running of the Indy 500.
Read more »
Dow slides 500 points, S&P 500 retreats from record while Nasdaq hits new heightsSamantha Subin is a digital news associate with CNBC.
Read more »
2024 Indy 500 Picks, Predictions, and Race PreviewIndy 500 picks, predictions for 2024 Indianapolis 500. Indy 500 best bets for May 26 from Indianapolis Motor Speedway.
Read more »
2024 Indy 500 Picks, Predictions, and Race PreviewIndy 500 picks, predictions for 2024 Indianapolis 500. Indy 500 best bets for May 26 from Indianapolis Motor Speedway.
Read more »
Tom Blomqvist benched for next 2 races following opening lap crash at Indianapolis 500Josef Newgarden collected the largest prize in Indianapolis 500 history at Monday night's Victory Celebration.
Read more »
S&P 500 Dip Could Spark Buying Near This Key Level; Nasdaq Remains in a Bull TrendStocks Analysis by Declan Fallon covering: S&P 500, US Small Cap 2000, iShares Russell 2000 ETF, NASDAQ Composite. Read Declan Fallon's latest article on Investing.com
Read more »