Federal Reserve Chair Jerome Powell copped the blame for sending the financial markets into a tailspin on Friday with his hawkish Jackson Hole speech.
Rally Stalls: The setback came even as the markets were fighting back from the weakness seen for much of the first half of the year. Most assets bottomed in mid-June, raising hopes that sentiment may have reversed.
Wall Street analysts and market participants, however, were divided on whether the reversal seen in mid-June marked a sustained uptrend or a bear rally.
Historically, the year-end brings buyers into the market, thanks to the Santa Claus rally. However, September has been a dark horse, when markets have more often been lower than higher.
Louis Navellier, a fund manager, said in a recent note that late September may signal a bottom in the market. Irrespective of the message telegraphed by Powell on Friday, the Fed might not make any major rate move around the midterm elections in November. And if inflation readings over the next few months show a downtrend, the …
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