The US and World Stock Markets are Functioning Normally
$DIA, $SPY, $QQQ
The technical selloffs in US and World stock markets, is not related to market fundamentals.
World stock markets fell for a 4th day running on investor concerns about the prospect of higher interest rates and stretched equity valuations.
US stocks marked about a 10% decliner Monday and bounced, tested that low Tuesday bounce and finished +567.02 pts on the day, for a 1,767.02 pt swing.
“I am not overly concerned about the market volatility. I think the fundamentals are quite strong,” U.S. Treasury Secretary Steven Mnuchin said Tuesday,
“I think you have seen a normal market correction…,” he said, adding that the move did not raise any financial stability concerns.
At its session low on Tuesday, the S&P 500 had declined 9.7% from its 26 January record highs.
He also urged US lawmakers to raise the nation’s debt ceiling, but declined to comment on whether that should happen this week or not.
Last week Secretary Mnuchin called on the GOP-controlled Congress to lift the federal debt limit “as soon as possible” so the government could pay employee benefits and other obligations.
In a letter to congressional leaders last week, Secretary Mnuchin said the Treasury Department would continue to suspend payments into federal employee retiree, health and disability funds through 28 February.
The Congress must raise the debt ceiling to avoid a government default. The nonpartisan Congressional Budget Office last Wednesday estimated that the US Treasury would exhaust its borrowing options in 1-H of March.
HeffX-LTN Market Indexes Technical Analysis is Neutral to Bullish overall.
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