Trading on Wall Street ended in the red for the third time in a row on Friday. The easing of monetary policy tightening by the Federal Reserve didn’t help either. Stocks are starting to be affected by fundamentals rather than specific interest rate decisions.
How deep the economic downturn will be
“The closer we get to 2023, the more stocks will be influenced by economic data. Because this data will answer a very important question. Namely, how deep the economic downturn will be and how long it will last,” Tom Essaye, co-founder of the New York company Sevens Report Research, told Marketwatch.com.
Economic slowdown
Other experts also agree that economic fundamentals are starting to play a key role in which direction the stock markets will move. The evidence is, among other things, the decline on Wall Street even after the Federal Reserve raised rates on Wednesday less than in the previous four occasions. Investors seem to be more concerned about an economic recession than inflation. This is because it has probably already culminated in the USA, while the economic slowdown, or even a slump, is yet to come.
