Tuesday, 28 March 2017

Markets fall but S&P 500's long-term momentum “still very solid”

Markets fell on Monday.

The S&P 500 fell 0.1 percent, the STOXX Europe 600 fell 0.4 percent and the Nikkei 225 plunged 1.4 percent.

“Equity valuations have been underpinned by the Trump reflation trade since November, but the failure of the health-care bill raises major doubts about the strength of the administration and risks unwinding all the gains that the market has seen over the past five months,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor.

The S&P 500 did recover from a much deeper decline on Monday, with Patti Domm at CNBC attributing it to end-of-quarter buying.

Domm also reported that according to Sam Stovall, chief investment strategist at CFRA, April is on average the second best month of the year for the S&P 500.

Beyond that, technical analyst Katie Stockton said on CNBC on Monday that the long-term momentum of the market “is still very solid”.

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