Connect with us

Hi, what are you looking for?


S&P 500 index needs to hold this key level while Morgan Stanley models interest rates to rise

Bears Push Bitcoin Price Lower

Katie Stockton, Fairlead Strategies founder and managing partner, said on CNBC’s “Squawk Box” segment Wednesday morning we are seeing a sharp pickup in volatility as the Volatility Index jumps above its 200-day moving average.

But on a more day-to-day basis, the S&P 500 index has swung on average more than 80 points during a daily session and this is “more characteristic of a bear market cycle,” Stockton said.

S&P 500 outlook is to the downside

Stockton said recent volatility is “very unsettling” and it is evident the market is trending to the downside after the S&P 500 index now trading below the 3,900 level. The next major support level for the index is 3,505 that represents last October’s lows. Stockton added:

That to us is what frames downside risk here and we are expecting more of the same in terms of volatility.

Fed needs to ‘stay the course’

Separately, Morgan Stanley Wealth Management Chief Investment Officer Lisa Shalett said on Bloomberg TV central banks are “late to the party” in addressing spiraling inflation. Despite what seems like a financial sector and major global equity markets trading sharply in the red on Wednesday, she said central bank credibility must be preserved by making it clear their “goal is to fight inflation.”

Not doing so has much longer-term structural damage to the economy in terms of inflation risk premiums, overall policy term premiums and turns into higher for longer rates over long periods of time. But not all market experts agree. Invezz reported on March 14 how some experts are modeling the Fed will move in the other direction and lower interest rates.

The Fed has to “stay the course” and to do anything else at this time “would really be a misstep,” she concluded.

The post S&P 500 index needs to hold this key level while Morgan Stanley models interest rates to rise appeared first on Invezz.

You May Also Like


Mimiq, Inc is announcing today the launch of their new product, Mimiq Track, at CES as part of their latest product line to operate...


Genesis Trading, the cryptocurrency brokerage and lender that halted customer withdrawals in the aftermath of FTX collapse, believes it can sort out its financial...

Editor's Pick

If you haven’t been following the “Twitter Files” saga, the gist of it is that the US federal government routinely pressured pre-Musk Twitter, and...

Editor's Pick

In Risky Business: Why Insurance Markets Fail and What to Do About It (Yale University Press, 2023), economists Liran Einav (Stanford), Amy Finkelstein (MIT),...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023