economy
The S&P 500 could join other U.S. benchmarks in a correction next week. Here's what's ahead
Investors are growing more uneasy as the war stretches into a fifth week.
TL;DR
- The Nasdaq Composite has entered correction territory, and the Dow Jones Industrial Average has followed, with the S&P 500 also nearing a correction.
- The prolonged Iran war is increasing investor anxiety, with the Strait of Hormuz remaining closed and real-world economic impacts emerging.
- Treasury yields are rising, and Fed funds futures are pricing in an interest rate hike later this year instead of a cut.
- Oil prices remain above $100 a barrel.
- Citigroup strategists are reducing their exposure to U.S. equities, citing misaligned incentives for a quick end to the conflict.
- The upcoming March nonfarm payrolls report will be crucial for assessing the resilience of the U.S. labor market.
- Historically, April marks the end of the best six months for the stock market.