(Bloomberg) — Volatility gripped U.S. financial markets as investors weighed strong housing data against dimming prospects for additional stimulus.
The S&P 500 swung between gains and losses after an early rout took it 10% below its Sept. 2 high. Blowout home-sales data briefly bolstered stocks before major indexes turned lower. Falling oil prices dragged down energy shares, while the dollar strength hit materials producers.
Investors depending on a backdrop of government aid to stem recent slides in everything from stocks to gold may be in for a short-term reality check. Goldman Sachs Group Inc. economists cut their forecast for U.S. growth in the fourth quarter by half, saying that “it is now clear that Congress will not attach additional fiscal stimulus to the continuing resolution.”
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