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Stocks Face Risks in October as Earnings, Rates, Politics Loom

  • VIX volatility index has been quiet recently, but expected to rise with upcoming earnings season and other risks
  • Fed interest rate hikes could shake markets if higher for longer than expected
  • High oil prices, UAW strike, potential gov shutdown could hurt consumer spending and business growth
  • Seasonality typically brings volatility in Oct and stocks are at risk of pullback after big 2023 gains so far
  • Gov shutdown starting Oct 1 could inject more volatility though often doesn't cause major damage
yahoo.com
Relevant topic timeline:
Bitcoin's volatility is expected to decline, signaling a maturation process and potential retracement period, according to Bloomberg analyst Mike McGlone.
Cryptocurrency traders are preparing for increased volatility in the market after bitcoin's recent plunge, as indicated by on-chain data showing a surge in implied volatility and adjustments in traders' strategies.
The stock market has been riding high in 2023, but recent market trends and uncertainties about interest rates and inflation have led to a pullback in August, leaving investors unsure about the future direction of the market. It is advised to stick to a long-term investment plan and remain focused on investment objectives and risk tolerance.
The stock market is rising despite bad news, as interest rates lower and stabilizing rates are seen as positive signs.
Investors are turning to high-yield cash alternatives, such as savings accounts and bonds, which offer returns of over 5% and are outperforming the S&P 500, prompting some to reconsider their exposure to the stock market's volatility.
The U.S. stock market experienced some volatility this week, but the artificial intelligence boom helped offset rising bond yields, as investors wait for key economic data to assess the markets' performance.
The markets are facing numerous headwinds, including an imbalanced U.S. economy, stubborn inflation, a looming recession in Europe and China, a bulging deficit, reduced market liquidity, rising geopolitical risk, and high price earnings ratios, making above-average cash reserves a sensible choice for investors.
The recent stagnation in the price of Dogecoin following the cryptocurrency market crash has led to a decrease in volatility, with potential for a 170% upward move or a 34% drop, depending on whether the price successfully breaks out of its long-term descending triangle formation.
European stock markets are expected to open higher following positive moves on Wall Street, as investors anticipate fresh economic data and a potential pause in interest rate hikes by the Federal Reserve.
Summary: Investing during periods of volatility in the stock market is advised by Warren Buffett, as the market's short-term movements generally do not affect long-term investment strategies, and investing consistently during rough patches can be more lucrative than waiting for the perfect time to buy. It is important to focus on companies with solid business fundamentals and a competitive advantage when choosing stocks.
Stock market investors are facing a challenging and uncertain period, with increasing volatility and difficult decisions to make.
Bitcoin and other cryptocurrencies are experiencing low volatility, which typically leads to further declines, with support expected at a certain level.
The stock market remains above mid-August lows, but higher highs are not expected yet, with the focus on upcoming earnings results and economic data.
Investors should prepare for increased market volatility next week as the stock market faces multiple risk events, including U.S. CPI inflation, retail sales figures, and wholesale prices, which will impact the Federal Reserve's policy outlook.
The stock market has been stable recently, but it is expected to experience increased volatility in the future.
The crypto market is expected to experience increased volatility due to economic events such as the downward revision of economic growth forecasts for the eurozone and the looming FTX liquidation, as well as the release of crucial inflation data in the US.
The stock market is expected to reach new highs by the end of the year, as a leading bond market indicator signals a bullish trend, according to Bank of America.
Oil price volatility is expected to surge due to the significant supply shortfall caused by the OPEC+ supply cuts, potentially leading to a surplus if cuts are unwound next year but with low oil stocks.
Markets have experienced volatile trading, leading to a rollercoaster ride for investors.
WisdomTree Investments' CIO, Scott Welch, warns investors to prepare for a surge in volatility despite the current calmness of the markets, recommending prioritizing quality in portfolios, diversifying at various levels of risk, and investing in less followed asset classes.
Investors are selling and bringing the market down due to reasons like interest rates, macroeconomic weakness, fear of giving up on gains, the Federal Reserve, the political climate, and potential strikes, according to CNBC's Jim Cramer.
The stock market's decline has intensified recently, leading to concerns about how far it could fall.
Crypto market volatility is expected to increase as several key economic events take place this week, including the Federal Reserve chair's speech and the release of GDP and inflation figures, which could have a bearish impact on the market.
Higher interest rates are causing a downturn in the stock market, but technological advancements in recent decades may provide some hope for investors.
A majority of Wall Street investors are concerned about the stock market's gains in 2023 and believe that it could retreat further as the risk for a recession increases.
A potential government shutdown is causing some investors to worry, contributing to the stock market's recent dip, but experts believe the impact on asset markets is already priced in, while previous shutdowns have shown to have little long-term effect on stocks.
Investors are concerned about the recent stock market decline due to surging oil prices, rising bond yields, and worries about economic growth, leading to a sell-off even in major tech companies and potentially impacting President Biden's approval ratings.
The stock market typically experiences higher volatility in the month of October, but historical data shows that stocks tend to perform better in October than many investors expect.
Investor sentiment is being weighed down by factors such as rising interest rates, low bond yields, a potential government shutdown, and consumers facing rising prices without salary increases, but there is optimism that October could bring a turning point for the market.
The recent two-week selloff in the stock market confirms a weak market and raises the possibility of new lows, indicating that the so-called bull market was just a rebound and the next bull market will be driven by different factors. Investors should focus on traditional fundamentals and cash reserves rather than poor investments.
Investors are likely to continue facing difficulties in the stock market as three headwinds, including high valuations and restrictive interest rates, persist, according to JPMorgan. The bank's cautious outlook is based on the surge in bond yields and the overhang of geopolitical risks, which resemble the conditions before the 2008 financial crisis. Additionally, the recent reading of sentiment indicators suggests that investors have entered a state of panic due to high interest rates.
Global financial markets are bracing for potential volatility and uncertainty following Hamas's surprise attack on Israel, with investors closely monitoring the reaction of oil prices and the potential for conflict to spread throughout the Middle East region.
Analysts are optimistic that the stock market will reach new all-time highs in 2024, despite concerns over inflation and rising interest rates, and there are opportunities for investors, although bloated Big Tech valuations may limit further upside for the Nasdaq.
Stocks rise as investors digest earnings from big banks and focus on the outlook for interest rates and bond yields; oil prices continue to climb due to tensions in the Middle East.
Being optimistic in the stock market can lead to biased decision-making and increased risk, resulting in potential losses for investors.
Global markets are preparing for more volatility as Israel braces for a likely ground offensive into Gaza and fears of the Israel-Hamas conflict escalating into a regional conflict push up energy prices.
The Treasury market is experiencing high levels of volatility, similar to what was seen during the pandemic, due to concerns about rising yields, the Federal Reserve's hiking cycle, and uncertainty surrounding the conflict between Hamas and Israel.
Investors who are nervous about the stock market's volatility can stay invested by following three strategies: segmenting savings based on time frame, investing only after debts are under control, and recognizing that a share of stock represents ownership in a business.
Stock market investors are not easily spooked by rapidly rising Treasury yields, suggesting they believe the rise is simply momentum and not indicative of true economic signals, according to Nicholas Colas of DataTrek Research.
Stocks experienced volatility ahead of Federal Reserve Chair Jerome Powell's speech, with tech stocks performing well due to impressive Netflix earnings, but ultimately ending the day with a decline after Powell reiterated concerns about high inflation.