From the wsj’s “U.S. Stock Futures Slide on New Risks” posted early Monday:
U.S. stock futures fell Monday, suggesting the major stock indexes will slide lower from record highs, as investors booked profits while weighing new political and economic uncertainties…
Stocks have rallied in recent days on bets that a Democrat-controlled Congress will increase government spending, bolstering the economic recovery.
Market sentiment is dimming at the start of the new week as investors confront a number of risks. On the political front, House Speaker Nancy Pelosi (D., Calif) said the House may move to impeach President Trumpas soon as this week. That is prompting concern that fresh rancor in Washington may diminish support for other important measures.
Recent economic data also showed that the U.S. labor-market recovery stalled in December, ending seven months of job growth, adding to concerns that the short-term outlook is getting worse. Covid-19 infection rates also remain elevated. Experts have warned this month of surges in new cases, hospitalizations and deaths after December’s holiday gatherings and travel.
“Everything is a little bit bumpier than we expected it to be a week ago,” said Luca Paolini, chief strategist at Pictet Asset Management. “It feels like 2020 hasn’t really ended. We are in the middle of a pandemic, we are still talking about U.S. politics even more than before. The underlying story is still pretty much the same.”
My take: A “little bit bumpier”?