All major S&P sectors finished the session in negative territory, with the exception of energy. The sector rose 1.8% as oil prices gained and is on pace to close out the week 14.7% higher.
“The environment is ripe for a crisis and if the Fed keeps its hawkish communication up I think we’re quite likely to have something break in the financial markets,” Scott Minerd, Guggenheim’s global chief investment officer said on CNBC’s “Closing Bell: Overtime” on Thursday.
Minerd said the fast pace of tightening is starting to create cracks in the financial markets and could force a Fed pivot in the coming weeks.
“All the signs are there,” he said. “I can’t tell you exactly what will cause it, but the environment is ripe and when the Fed pivots, they’re not going to preannounce it, they’re not going to ring a bell.”
