The fourth quarter is already intact and the time might be approaching very soon where the U.S. dollar gets stronger as it always does when the year is about to end. While on the other hand, Wall Street goes in hands of the bears which investors might be looking forward to.
The U.S. stock market is trading at record high levels where there was a massive gain in the past few months in the S&P 500 and as well as the Dow Jones index, which was actually caused by the reluctance of the Federal Reserve towards cutting down on its stimulus of 85 billion dollars. This constant injection of money has caused the business sector to grow, more IPOs were done, and the employment fostered in the U.S. economy.
But the question now is how sustainable this sort of injection is? Would it last longer? Is all that growth genuine or fake?
Sentimental Pattern is the Key
No matter what, sentiments and past patters do hit the market as they always have. So investors are getting ready to book their profits as they longed the market and are expecting a healthy correction in Wall Street that may last till the end of December.
The S&P 500 index is trading at 1767 level where it has strong resistance at 1772, breaking of which could show 1779 but failing to break 1772 could lead the sellers to continue entering the market with tight stop losses.
Moreover, the investors are scrutinizing the jobs data that showed a mind-blowing improvement in the job market where the U.S. economy managed to add more than 200,000 jobs in the month of October, despite the layoffs that were done due to that government shutdown problem held in the very same month.
News Corp and T-Mobile Drop
As for the shares, the publisher of the Wall Street Journal – News Corp – plunged by more than 3% in Sydney as the company’s revenue disappointed by the investors and couldn’t meet the forecasted numbers. Moreover, the T-Mobile company also dropped by 2.1% as the company is issuing new stock to the investors that have a worth of around 1.8 billion dollars.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org