Premarket: Apple is red

apple premarket red 9-17From wsj.com’s “U.S. Stock Futures Fall as Fed Outlook Rattles Investors” posted early Thursday:

U.S. stock futures fell Thursday, pointing to a steepening rout in the S&P 500 as investors became unsettled by the Federal Reserve’s dour outlook as well as conflicting signals about when vaccines may become available.

Futures tied to the S&P 500 dropped 1.2%, suggesting that the benchmark may fall for a second day after the opening bell in New York. Contracts tied to the Nasdaq Composite fell around 1.3%, pushing the tech-heavy index further into negative territory for the month.

Federal Reserve Chairman Jerome Powell’s comments Wednesday that the economic outlook is “highly uncertain” are weighing on sentiment. Policy makers indicated concern that easy gains from reopening the economy could mask deeper scars among the most vulnerable businesses, with people likely to face longer spells of joblessness. The central bank also signaled that interest rates would stay near zero until 2023.

“The Fed said it would keep rates low for ages. But that’s not enough,” said James Athey, senior investment manager at Aberdeen Standard Investments. “Not taking away is no longer sufficient for this market. You need to do more, more, more.”

My take: Hey, everybody’s hurting.

3 Comments

  1. Jerry Doyle said:
    “…. My take: Hey, everybody’s hurting.”

    I’m not certain exactly what you mean by the above statement. The problem is many folk are not hurting; they are doing as good if not better than before COVID-19. Individuals invested in the markets are seeing good returns. Individuals working from home have less expenses than before and their working environment is comfortable. In fact, many are using the additional income for home improvements. The talking heads on TV, the politicians, the public health officials all draw their salaries and are more animated than ever in their respective positions. The problem is that those who are least affected during this period feel little to no pain. They haven’t missed a paycheck. Take away “their” paychecks and strip them of their jobs and we would see swift action toward recovery for those who truly are hurting.

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    September 17, 2020

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