Buy Dip in US Stocks on Solid Earnings, Federated Hermes Says

The retreat in US stocks is likely to be short and shallow as corporate earnings and the economic outlook remain robust, according to Steve Chiavarone, deputy chief investment officer at Federated Hermes.

US stocks have started September on a dour note as investors rethink lofty technology valuations, while a selloff in bonds over concerns about government spending has battered sentiment. Focus this week is on key labor market data before the Federal Reserve’s policy meeting.