As the new quarter kicks off, all S&P 500 sectors sit at least 12% off their 52-week highs. Nine sectors finished the quarter in negative territory.
In the fourth quarter, increased inflation and Federal Reserve actions to curb soaring prices while ignoring the impact on the economy will likely continue to weigh on markets, said Truist’s Keith Lerner. He added that oversold conditions also make the market vulnerable to a sharp short-term bounce on good news.
“I think we could be set up for some type of reprieve but the underlying trend at this point is still a downward trend and choppy waters to continue,” Lerner said.
