In 3 trading sessions this week, the S&P 500 is down approximately 2.85%. This is the fastest pace since March, when traders worried about a possible banking crisis.
The current decline could be due to several reasons:
→ at the end of August there will be a summit in Jackson Hole, where representatives of central banks will gather. Powell is scheduled to speak on the 25th of August. Market participants are likely to be concerned about the continuation of tight monetary policies. Parallel to this, Xi Jinping is scheduled to visit South Africa for the BRICS Summit.
→ Prospects for an economic crisis in China that could spread to the whole world. It was announced today that Evergrande, the world’s largest Chinese developer (whose shares trade in New York), filed for bankruptcy. This will likely lead to other bankruptcies.
→ A series of reports of companies from the index for the Q2, which disappointed investors.
Markets Insider, however, publishes Bill Miller’s opinion. He believes that, after a successful first half of the calendar year, another one could follow. The inflation rate is falling, and the GDP growth rate remains stable.
The chart of the S&P-500 index shows that the decline accelerated after the bears cleared a block of support…