Connect with us

Hi, what are you looking for?

Stocks

Market Decline Persists Due to Heightened Concerns of Impending Recession

Image Source: Bro Crock / Shutterstock

The major stock indices remained relatively stagnant compared to last week, with noticeable further declines. It’s a lackluster beginning to the week, setting the stage for another period of market losses that are wearing down investors and causing hesitation.

“Approaching the end of December, investors are eagerly anticipating the Santa Claus Rally, but stocks have experienced consecutive weeks of decline for the first time since September,” remarked Chris Larkin, who is the managing director of trading at E*Trade within Morgan Stanley. “While a temporary boost was seen with cooling inflation data, the Fed’s firm stance on potentially maintaining high rates for an extended period has likely subdued some investors.”

“Although rates and inflation might have reached their peak, we view this as a harbinger of reduced profitability, a reality that we believe is not being fully acknowledged but cannot be disregarded any longer,” stated Michael Wilson, an equity analyst at Morgan Stanley, in a message to investors.

Notably, affluent millionaire investors are anticipating substantial declines well into 2023 and are maintaining a pessimistic stance as a consequence.

“This group hasn’t exhibited such a high level of pessimism since the 2008 and 2009 financial crisis,” noted George Walper, who serves as the president of Spectrem Group.

Image Source: Bro Crock / Shutterstock

You May Also Like

Stocks

Previously, in April, the CEO of Tesla and SpaceX, Elon Musk, caused quite a stir by revealing his intentions to procure the entire social...

Stocks

Concerns about rising prices are impacting the entire economy of the United States, and one sector that is particularly affected is the real estate...

Stocks

With rising expenses in fuel and power worldwide, particularly in the United States, the quest for sustainable energy sources has intensified. A significant historical...

Stocks

Kellogg, a major supplier of packaged foods in the United States and globally, has maintained overall centralized control of all its owned labels during...