Home Business News US stocks rebound but remain at risk

US stocks rebound but remain at risk

29th Sep 23 11:04 am

The US stock market rebounded to a certain extent after a long correction. However, the expectations that the Federal Reserve could maintain its interest rates elevated for a long period of time could continue to weigh on the market.

Major US indices have been retreating for almost two months now as traders’ concerns over the direction of monetary policy weighed on expectations.

Similarly, the continuous increase in oil prices could affect performances in a number of sectors and could continue to fuel concerns over inflation and monetary policy.

On the other hand, it could continue boosting the US energy sector which has been climbing rapidly since the middle of July.

Additionally, some risks remain around the outcome of the negotiations between auto makers and the workers’ union. As a result, US car companies could continue to see pressures to the downside over the short term.

In the meantime, trader’s attention should turn to the release of new inflation data later today which could affect expectations and could drive some volatility.

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