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Special Edition: S&P 500 In Chaos!

On Monday, we announced that we have been wrapping up “our S&P 500 Chaos series until 2019, unless market events prompt a special edition.”

Well, market occasions have prompted this particular version! In falling by greater than 2% on Friday, 21 December 2018, the S&P 500 lastly accomplished its fifth Lévy flight event of 2018, as traders absolutely shifted their forward-looking attention from 2019 Q1 out towards the extra distant future quarters of 2019 Q3 and 2019 This fall, the place 12 months over 12 months dividend development has lengthy been projected to considerably sluggish.

We’re now about to quote ourselves on the origin of the U.S. stock market’s newest Lévy flight:

The U.S. stock market’s fifth Lévy flight occasion of 2018 started on 4 December 2018 as traders reacted to the partial inversion of the U.S. Treasury yield curve and to New York Fed President John Williams’ tone-deaf, hawkish comments promising extra fee hikes nicely into 2019 on that date.

That’s related immediately, as a result of as soon as once more, New York Fed president John Williams’ tone-deaf and hawkish comments have performed a significant position in sinking the S&P 500 (Index: SPX) to its lowest level in 2018, whereas President Trump’s commerce advisor Peter Navarro additionally contributed. Here are three key headlines and hyperlinks to the tales behind them to supply context:

ZeroHedge put together the next chart for instance what occurred to stock costs as traders absorbed the precise issues they stated that drove the day’s appreciable volatility within the stock market.

Unless the Fed begins actually listening to markets, the legacy of each Fed Chair Powell and New York Fed president Williams could lie in having needlessly pushed the U.S. financial system into recession as a result of they selected to maintain the Fed’s insurance policies on autopilot.

Let’s tie a bow on the foremost market-moving information headlines from the ultimate full week of buying and selling in 2018….

Monday, 17 December 2018

Tuesday, 18 December 2018

Wednesday, 19 December 2018

Thursday, 20 December 2018

Friday, 21 December 2018

Elsewhere, Barry Ritholtz divided the week’s main economics and markets information into six positives and seven negatives.

That’s actually it for our S&P 500 chaos collection till 2019 – we’ll submit one final time in 2018 with the Biggest Math Story of the 12 months. Enjoy the vacations, and we’ll be again to catch up the most recent main market information up in January!



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