Thursday, 28 October 2021

US stocks fall, “economy still fundamentally strong”

The S&P 500 fell 0.5 percent on Wednesday.

However, analysts see scope for more gains ahead.

“Seasonal tailwinds, improving market internals, and clear signs of a peak in the delta variant all provide potential fuel for equities heading into year-end, and we maintain our overweight equities recommendation as a result,” said Ryan Detrick, chief market strategist for LPL Financial.

Economists are also unconcerned about an expected slowdown in US third-quarter GDP growth.

Natixis chief economist for the Americas Joseph LaVorgna said that the slowdown “is a function of supply distortions more than anything” and that the “economy is still fundamentally strong”.

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