Home » Wall Street uncertain in day four witches. Goldman Sachs fears jump in volatility in the coming month. Fed waiting at the gate

Wall Street uncertain in day four witches. Goldman Sachs fears jump in volatility in the coming month. Fed waiting at the gate

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Wall Street is still cautious, in a month that has historically been confirmed as negative for the US stock market. The Dow Jones drops 0.05% to 34,735 points; the S&P falls 0.22% to 4.463 points, the Nasdaq falls 0.31% 15.132.81 points.

Yesterday the Dow Jones Industrial Average lost 63 points, after dropping down to -274 points in the intraday lows; the S&P 500 fell 0.16%, while the Nasdaq Composite fared better, which benefited from buy on Netflix, Microsoft and Amazon.

The decision of JP Morgan analysts to cut their outlook on US GDP for the third quarter, from the growth of + 7% previously expected to + 5%, certainly does not help today.

That said, the week ends in positive territory.

The Dow Jones gained 0.41%, the S&P 500 was up 0.34%, the Nasdaq Composite was up 0.44% on a weekly basis.

On the other hand, September remains negative, with the Dow Jones losing 1.7%, the S&P 500 retreating by 1.1% although only 1.6% lower than the absolute maximum and the Nasdaq down by 0.5%.

Today is a special day for Wall Street, grappling with the day of the “four witches”, that is, the expiration of futures on stock indices, options on stock indices, options on stocks and futures on individual stocks.

In a statement published today, John Marshall, head of the derivatives research division at Goldman Sachs, wrote that he expected “an increase in volatility over the next month due to the seasonal increase in investor uncertainty, l ‘continuing uncertainty linked to the virus, and to the significant catalysts represented by monetary and fiscal policies “.

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Marshall recalled among other things that the volatility of the S&P 500 index usually increased by 27% in the period between August and October.

Among the Invesco stocks to rise on Wall Street, following rumors of the Wall Street Journal that the investment management company is in talks for a merger transaction with State Street’s asset management division.

The sources have specified that the agreement is not, however, imminent and may not even materialize. The Invesco stock rallied up to + 7%, while State Street reported a slight decline.

Meanwhile, attention to the news that emerged yesterday with the announcement of Goldman Sachs Asset Management, which has decided to focus on the FAANG of the future, with a new equity ETF: it is the Goldman Sachs Future Tech Leaders Equity ETF (ticker GTEK), which focuses on those technology companies with a market capitalization of less than $ 100 billion based in both advanced countries and emerging markets.

The ETF’s bet is to find those companies destined to become, as the acronym FAANG summarizes, the new Facebook, Amazon, Apple, Netflix and Facebook. Of these five stocks, most are down, Netflix is ​​weak, while Amazon is up weakly.

Investors await at this point for the meeting of the FOMC, the monetary policy arm of the Federal Reserve, to be held next week for two days, with the announcement on rates and upcoming monetary policy moves next Wednesday. September 22. Traders will wonder if it will be on that occasion that Jerome Powell’s Fed will officially announce the tapering of QE. Some experts believe the formal announcement is more likely to arrive in November.

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