Last week, U.S. equities suffered their largest weekly losses since the financial crisis. The NASDAQ entered bear market territory, and the Dow Jones Industrial Average and the S&P 500 Indices are approaching 20% declines from their highs.
Several factors weighed on stocks, with concerns regarding a hawkish Fed and a potential slowing economy at the forefront. The news out of Washington, including the government shutdown, added to the markets’ fears. The past few weeks have dealt the market numerous factors that create a good deal of uncertainty on several fronts; and, markets struggle the most when uncertainty is high. Until these issues start to come to resolution, risk markets will likely see significant volatility and pressure lower in price.
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