US stock market closes in red amid Fed policy uncertainty
The US stock market ended the day in the red, with the S&P 500 index falling amid ongoing uncertainty surrounding the Federal Reserve's next steps in monetary policy.
The US Labor Department reported a decline in initial jobless claims, signaling a stable labor market. At the same time, analysts note that the persistent gap between strong employment data and investor sentiment is contributing to heightened market volatility. Read more at the link.
S&P 500 and Nasdaq under pressure
On Thursday, the S&P 500 and the Nasdaq indices dropped by 0.50%, as investor concerns grew over elevated stock valuations and mixed signals from the Federal Reserve.
Studies show that markets remain under pressure due to uncertainty about potential interest rate policy changes. However, some experts believe the current decline could be a short-term correction before a new rally. Read more at the link.
Risks of overheated market
Analysts warn that markets are caught in a state of uncertainty due to high equity valuations and the possible consequences of Federal Reserve rate cuts.
Investors are increasingly concerned about a potential tech bubble, reminiscent of the dot-com crisis. Some analysts suggest that a sharp asset revaluation could trigger a chain reaction across global markets. Read more at the link.
Reminder: InstaForex offers the best trading conditions for stocks, indices, and derivatives, helping you profit effectively from market volatility.
