http://www.ibtimes.com/dow-jones-in...deral-reserve-uncertainty-2116670?rel=latest4
U.S. stocks traded sharply lower Monday, with the Dow Jones Industrial Average tumbling 250 points, as market professionals looked ahead to a busy week filled with multiple speeches from top Federal Reserve officials, which could provide more clues as to the timing of the central bank’s inevitable rate hike. Investors are also weighing a looming government shutdown in the middle of the week, followed by a highly anticipated employment report for September -- due out Friday -- that might shedding more light on whether the Fed will lift rates this year.
Experts say volatility in the financial markets is likely to remain elevated this week. “Investors remain on edge, largely in pause mode to a degree after more questions than answers surfaced at the end of last week regarding global economic turmoil and the Fed’s decision to not raise rates,” Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, said.
The resignation of Speaker of the House John Boehner could also add complexity to market dynamics in the near term. While his decision to step down seemingly reduces the likelihood of a government shutdown, the debt ceiling still remains a work in progress, Sandven said.
“In aggregate, political wrangling and brinkmanship will weigh on investor sentiment and even equity prices over the next few days and weeks,” Sandven said.
U.S. stocks traded sharply lower Monday, with the Dow Jones Industrial Average tumbling 250 points, as market professionals looked ahead to a busy week filled with multiple speeches from top Federal Reserve officials, which could provide more clues as to the timing of the central bank’s inevitable rate hike. Investors are also weighing a looming government shutdown in the middle of the week, followed by a highly anticipated employment report for September -- due out Friday -- that might shedding more light on whether the Fed will lift rates this year.
Experts say volatility in the financial markets is likely to remain elevated this week. “Investors remain on edge, largely in pause mode to a degree after more questions than answers surfaced at the end of last week regarding global economic turmoil and the Fed’s decision to not raise rates,” Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, said.
The resignation of Speaker of the House John Boehner could also add complexity to market dynamics in the near term. While his decision to step down seemingly reduces the likelihood of a government shutdown, the debt ceiling still remains a work in progress, Sandven said.
“In aggregate, political wrangling and brinkmanship will weigh on investor sentiment and even equity prices over the next few days and weeks,” Sandven said.
