U.S. stocks down because Federal Reserve is getting closer to slowing down stimulus…

Dow, S&P slip from record highs on year’s lowest volume

08052013

Summary:

  • U.S. stocks down because after comments from Dallas Federal Reserve chairman said that the Federal Reserve is getting closer to slowing down the stimulus soon.
  • The technology sector was the S&P 500’s best performer with Apple leading because the Obama administration VETOED an International Trade Commission import ban on some of its products.
  • Since unemployment rate recently decreased to 7.4% means that the Federal Reserve is closer to dialing back its $85 billion-a-month bond-buying program, Dallas Federal Reserve Bank President Richard Fisher said on Monday. The stimulus program is given credit for a large part of this year’s rally in the U.S. stock market.
  • Data released in U.S. showing a strong growth in the service sector from a 3 year low.

 

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Categories: Capital Markets

1 reply

  1. The problem with this is that the Federal Reserve is very data dependent, which shows how sensitive the market really is on illusionary gains.

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