Wall Street enjoyed a bit of a breather in overnight trading, as the S&P 500 gained by 0.6% and Nasdaq closed higher by 1.2%.
It’s a welcome relief after drop in the past two weeks as tech shares bounced back, but there are still plenty of reasons for investors to be nervous in trading this week
For one, the rebound overnight was not all too convincing once we start to dig a little deeper beneath the surface. It was largely driven by big tech names with most of the stocks in the S&P 500 actually closing lower. That’s not a good signal on market breadth now, is it?
And with the Fed decision coming up later today, followed by earnings from Microsoft and Alphabet after the closing bell, there’s still quite a lot that could go wrong. Now, the Fed is widely expected to leave interest rates unchanged. So, I don’t see the decision itself being much of a surprise.