Trend change or an ongoing rebound?
A rebound rally in the S&P 500 may encounter resistance. Some investors may prefer to move into safe-haven assets like gold
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DeeperDive is a beta AI feature. Refer to full articles for the facts.
THE US stock market has entered a correction; the S&P 500 has fallen more than 10 per cent from its high in July. The choice of a 10 per cent fall as a threshold is rather arbitrary, but it is designed to distinguish a temporary retreat from a fall that marks the beginning of a new trend.
The choice of a 10 per cent threshold may not prove always correct. Hence, investors need to look for other features to confirm the trend.
The Federal Reserve marked the exact high of the S&P 500 in July 2023 with its “no recession” call. The S&P 500 has lost more than US$3.5 trillion in value since the Fed removed the words “recession” from its forecast.
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