The Toronto Stock Exchange’s S&P/TSX composite index closed down 263.38 points, or 1.8 percent, at 14,540.00.
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So what’s next? According to history “after going 50 days without a 1%+ decline, the S&P 500 slipped an average 1.5% in the following 20 trading days and fell in price two out of every three times”, Stovall wrote.
Dollar up against most majors on increased Sept Fed hike bets * Fed’s Rosengren says rate increase may be needed Treasury yields rise to 2-month high * Aussie, kiwi fall as traders unwind carry trades (Adds afternoon usa trading, analyst quote) By Dion Rabouin NEW YORK, Sept 9 (Reuters) – The dollar rose on Friday as remarks by Federal Reserve policymakers helped boost investor expectations of a near-term increase in us interest rates.
The rise in the influence of different markets on each other has been attributed to the growing impact of central bank policy on prices, and rising concern that the era of easing may be nearing an end roiled assets from bonds to currencies and stocks on Friday.
“Dovish Fed members getting called up to bat for a hike is putting people on edge”, Yousef Abbasi, a global market strategist at JonesTrading, told Bloomberg News. “It’s certainly one of those days where people are positioning for that September hike being back on the table”.
In a speech to the South Shore Chamber of Commerce in Quincy, Massachusetts, Rosengren said gradual tightening of monetary policy is likely to be appropriate to ensure the U.S. What was more concerning about today’s Fed message was not that the Fed wants to move despite data that may or may not support a hike or two. USA benchmark 10-year Treasury notes touched their highest level in more than two months on Friday.
“This is a big move in yields the last couple days”, Mark Kepner, managing director and equity trader at Themis Trading in Chatham, New Jersey, said by phone. The probability of a move by year-end was 60 percent. The NYSE Arca Disk Drive Index has plunged by 4.4 percent, pulling back further off Wednesday’s two-month closing high. Everything is being sold at the moment and that’s a big vote of no confidence.
“It’s really hard to be an investor in USA equities right now because benchmarks are just glued to those all-time highs”, said Steven Santos, a broker at Banco de Investimento Global SA in Lisbon.
Energy, gold, semiconductor, and housing stocks are also seeing considerable weakness along with interest rate-sensitive commercial real estate and utilities stocks.
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“But I think Japanese commercial orders emerge whenever the dollar/yen gets down to the 101 level”, he said.
