Stock Traders Brace for a Steeper Dive as Fed Ups Recession Fear
- Goldman Sachs strategists cut their 2022 view for S&P 500
- S&P 500 has dropped more than 3% in four of last five weeks
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A hawkish Federal Reserve crushed whatever hope investors had, plunging the stock market into a doom spiral last week and sparking traders’ fears that even more losses are on the way.
Any hopes that stocks had priced in the bulk of the bad news heading into the Fed’s latest meeting are now dashed. The S&P 500 Index lost more than 4% since mid-day Wednesday, when the central bank raised rates by three-quarters of a percentage point and signaled that a more aggressive pace of hikes than expected is on the way.