Wall Street is becoming increasingly confident the US stock sell-off is past its worst

Wall Street is becoming increasingly confident the US stock sell-off is past its worst

New York Stock Exchange building is seen at the Financial District in New York City, United States on March 29, 2020.
Tayfun Coskun/Anadolu Agency/Getty Images

US stocks are on course to close lower for a third consecutive week.

The S&P 500 has lost nearly 9% since early September's record high, mainly driven by losses in the technology sector.

But Goldman Sachs, Wells Fargo and Deutsche Bank are upbeat the US stock market sell-off is mostly over.

Goldman Sachs kept its end-of year S&P 500 target to 3,600 by year end.

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The wave of bearishness that has engulfed the US stock market in the last couple of weeks may be past its peak, meaning Wall Street could well be facing brighter days ahead, according to a number of investment banks.The S&P 500 has fallen for three weeks straight, under pressure mainly from technology stocks, many of which have seen their value hugely inflated this year, as cheap cash and a faster shift to online working and shopping during the pandemic fueled a near-unprecedented buying spree.As economic data points to an economy that is gradually recovering from the worst effects of the coronavirus crisis, which has killed nearly 200,000 Americans and left millions jobless, investors are increasingly sensitive to anything that suggests this improvement could be derailed, or that a vaccine may not be forthcoming as quickly as they hope.However, the Federal Reserve has indicated that, while it has no plans to inject any fresh cash into the financial system just now, it is confident that economic growth will continue to improve, but that it will also be able to keep US interest rates near zero until at least 2023.
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