Traders on the floor of the NYSE, Sept. 27, 2022.
Source: NYSE
Here are the most important news items that investors need to start their trading day:
1. Looking for a bottom
For a while it looked hopeful U.S. stock markets had fallen as far as they could this year. Since June, stocks had been chugging back. Now we’re in the early days of fall, and the S&P 500 is coming off a fresh 2022 low Tuesday. There could be more selling to come, as well. The Fed is sticking to its aggressive anti-inflation plan, while the upcoming batch of corporate earnings could offer some more dire news, even if companies have lowered expectations. Stock futures seesawed Wednesday morning following a new development from the UK (see below).
2. Bank of England gets involved
Analysts expect the Bank of England may need to raise interest rates more aggressively following market turbulence on Monday morning.
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The Bank of England is intervening in the market chaos unleashed by the new UK government’s tax-cut-heavy economic plan. The central bank said Wednesday that it would hold off on its plans to start selling bonds, also known as gilts in the UK, and start a temporary program of buying longer-term debt. “Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability,” the Bank of England said. “This would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real…
