Market Update for September 10, 2020
Stock market momentum stalls as investors grapple with several issues
Although global economic fundamentals are rapidly improving, stock market momentum has stalled in early-September, as investors grapple with several issues.
First is a growing sense of uncertainty regarding the U.S. presidential election. Recent polls suggest a more hotly contested race may be in the cards than originally projected at the end of June.
Second is the continued impasse on an additional U.S. fiscal stimulus bill. Once viewed as a nearly certain occurrence, a bipartisan deal on extended unemployment benefits and direct payments to consumers is looking tougher to come by with each passing day.
Lastly are the lofty valuations that have developed in segments of the U.S. stock market, particularly within the technology sector.
Although we expect each of these issues to contribute to daily volatility, we don’t view any as powerful enough to cause a sustained pullback in equity prices amid the backdrop of highly accommodative monetary policy.
The summary/prices/quotes/statistics contained herein have been obtained from sources believed reliable but are not necessarily complete and cannot be guaranteed. Past performance results are not necessarily indicative of future results.