The S&P Is Rising…But for How Long?

Advertisement

A falling market is always frustrating, but investors have not shown too many signs of panic so far.

top stock trades

Source: Shutterstock

This week, the S&P 500 has remained stable at support, despite back and forth in the Ukraine-related news and the Fed announcement Wednesday afternoon. We see the potential for more volatility based on the unpredictable nature of the war and the general uncertainty we’ve seen in 2022, but investors aren’t panicking quite yet.

To address some of the concerns investors have today, InvestorPlace held the first-ever Tech Crisis 2022 event on Wednesday night, and it was one for the record books.

Legendary investors Louis Navellier and Eric Fry held an emergency update to address market headwinds that are converging into a maelstrom that could rock the markets — even more than we’ve already seen in the short three months of 2022.

You’ve seen it in the ever-growing threat of inflation, the ongoing crisis in Ukraine, skyrocketing oil prices, previously exalted tech stocks plummeting to their lowest levels since the start of the COVID-19 pandemic two years ago…

The coming storm is only going to drive a deeper wedge between those who make money and those who…well, won’t be as lucky.

To help you put yourself in position to profit, Louis and Eric took to the stage for the Tech Crisis 2022 event. Catch a replay of the event here — and get two free stock picks just for viewing.

Monday: Fed Announcement Predictions Amid Russian Instability

We don’t know yet how bad the economic picture in Russia is getting. The Russian stock market has been closed since February, and there are no indications that it will reopen anytime soon. The last reliable quotes on the ruble showed it had lost 40% against the dollar.

The Ukraine crisis still dominates the news; however, there continue to be signs that sanctions and corporate pressure are having an effect. Talks between Ukraine and Russia continued all last weekend, and we expect this to prime investors to be in a buying mood after news of the Fed’s rate hike settles down. Tech and retail still look good, but energy is very risky.

Want to know what happens to stocks after a rate hike? Check out our livestream on YouTube where we examine the delicate balance between increasing rates and encouraging market growth.

Wednesday: The Fed Surprises, But Not in a Good Way

As of Wednesday, the S&P 500 had remained stable at support, despite back and forth in the Ukraine-related news and the Fed announcement.

As expected, the Fed raised the overnight rate by 0.25%. In response, the S&P 500 and the Nasdaq closed 2% and 4% higher, respectively, at market close on Wednesday. The Fed has indicated it will continue attempting to counteract surging inflation with several more rate hikes in 2022, so be prepared for more of the same. Bargain hunters and short-term sellers will be prevalent, and the sectors that will benefit most are tech and retail stocks. They’re due for a bounce after being trapped under Ukraine-related bad news.

Last Night’s Livestream: The Fed’s Dots Boost Stocks

The S&P 500 has been rising for two straight days and closed at its highest level in a month. So where is this big boost in stocks coming from?

It all started Wednesday after the Fed released their monetary policy statements and expectations for what is going to be happening in the economy moving forward. Wall Street responded well to these statements, sending the markets up after the announcement and continued the momentum into Thursday.

We are starting to see that, even though oil prices and treasury yields are still rising, more money is being moved back into the S&P 500. Click here to watch as we walk through Wall Street’s reaction to the rate hike and what to expect next.

Don’t forget to catch our twice-weekly livestreams on Mondays and Thursdays at 7:00 pm Eastern on YouTube.

We’ll be back with you next week.


Article printed from InvestorPlace Media, https://investorplace.com/tradingopportunities/2022/03/the-sp-is-rising-but-for-how-long/.

©2024 InvestorPlace Media, LLC