The stock market may have sent an important signal

The stock market may have sent an important signal

The stock market slump could continue as the dollar strengthens as Wall Street awaits Fed Chairman Jerome Powell’s speech later this week and concerns about inflation and a slower economy mount.

US stocks dropped sharply to start the week on Aug. 22, with the S&P 500 down 2.14% and the Nasdaq down 2.55%. Gold and oil prices also fell. The S&P 500’s plunge was the biggest in two months.

S&P 500 falls again

The market’s four-week winning streak ended last week as investors became more defensive and geared up for slower economic growth. The stock market could take deeper losses if the S&P fails to break above its 200-day moving average, Scott Minerd, Guggenheim’s global chief investment officer, said in a blog post.

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