Crypto, stocks in a volatile week before Fed decision, employment data

After a promising comeback in October, crypto and stocks stated on the last trade day of the month when a busy week began for economic data on Monday.

The indices S&P 500 and Nasdaq lost 0.6 % or 1.1 % at the beginning of the trading session on Monday. Ether and Bitcoin also recorded losses, both fell by about 1 %.

"This week is full of potentially important events, and there is no exaggeration to say that the events of this week lead to another 5 %rally of the S&P 500 or return a large part of the winnings of the past two weeks," said Tom Essaye, founder of Sevens Report Research.

Big Tech recorded crypto -like losses after a series of disappointing quarterly reports at the end of last week, but the markets remained stable overall.

Amazon lost more than 18 % while the company had missed income. Meta closed almost 25 % lower on Thursday and ended the trading session with the lowest price since 2016 after it had recorded a 4 % drop in sales in the year. Meta has dropped by more than 72 % in the previous course of the year, while Amazon has lost 40 %.

At the time of publication,

meta was traded almost 5 % lower on Monday, while Amazon lost about 2 %.

Nevertheless, the Nasdaq Composite rose by about 3 % in October, a breath of an otherwise disappointing year. The technology -based index has fallen by more than 30 % since the beginning of 2022.

In a similar way, the S&P 500 has a return of around 8 % for the month, but has still fallen by more than 19 % in the previous course. But the publication of the labor market data on Tuesday and the interest decision of the US Federal Reserve on Wednesday will prepare the markets for a turbulent November.

"The recovery itself was impressive, but not so remarkable," said Jim Paulsen, chief of chief of Leuthold Group, about the comeback of the stocks in mid -October. "Bear markets often have strong swings that ultimately fail."

75 BPS

predicted

The members of the Federal Open Market Committee entered their blackout period on October 22, but before the quiet phase before the session on Tuesday, several members expressed their determination to get inflation once and for all.

The President of Chicago Fed, Charles Evans, and the deputy chairman of the FED, Lael Brainard, as well as the President of the Cleveland Fed, Loretta Mester, and others in the past few weeks have insisted that the central bank will not shy away from higher interest rates to combat inflation.

On Monday, the Futures markets predicted a probability of 86 % for an rate increase of 75 basis points on Wednesday Data from the CME group.

"It is important to dampen our enthusiasm and to recognize that the S&P 500 at these levels now exceeds the limits of justification in view of the actual market room," said essaye.

"Firstly, pigeon hikes are still hikes. Yes, the Fed could reduce the intensity of its interest increases from December, but it is still the end interest that really counts, and if it does not (and ideally under) 4.50 %, there is no really moderate shift on the part of the Fed."

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The post "Crypto, Equities in Volatile Week Ahead of Fed Decision, Jobs Data" is not a financial advice.