{"id":452069,"date":"2022-05-24T18:17:31","date_gmt":"2022-05-24T15:17:31","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/goldman-sachs-says-stocks-will-slide-until-fed-clarifies-policy\/"},"modified":"2022-05-24T18:17:31","modified_gmt":"2022-05-24T15:17:31","slug":"goldman-sachs-says-stocks-will-slide-until-fed-clarifies-policy","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/goldman-sachs-says-stocks-will-slide-until-fed-clarifies-policy\/","title":{"rendered":"#Goldman Sachs says stocks will slide until Fed clarifies policy"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3732218d7ca\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3732218d7ca\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/goldman-sachs-says-stocks-will-slide-until-fed-clarifies-policy\/#%E2%80%9CGoldman_Sachs_says_stocks_will_slide_until_Fed_clarifies_policy%E2%80%9D\" >&#8220;Goldman Sachs says stocks will slide until Fed clarifies policy&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CGoldman_Sachs_says_stocks_will_slide_until_Fed_clarifies_policy%E2%80%9D\"><\/span>&#8220;Goldman Sachs says stocks will slide until Fed clarifies policy&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>A lengthy losing streak for US stocks is likely to continue until the Federal Reserve reveals the endpoint of its effort to tackle inflation by tightening monetary policy, according to a Goldman Sachs analyst.<\/p>\n<p>Major stock indices have finished lower for seven consecutive weeks \u2013 a selloff analysts have attributed in part to investor\u2019 fears that the Fed\u2019s plan to hike interest rates will trigger an economic recession.<\/p>\n<p>Goldman Sachs strategist Vickie Chang said stocks will likely suffer until the market gets clarity on when the Fed will stop hiking rates and taking other steps meant to bring consumer prices lower.<\/p>\n<p>\u201cIt may be necessary for the market to become more confident than it is that financial conditions tightening has been sufficient and that the Fed has delivered and signaled enough tightening,\u201d Chang said in a note to clients.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/NYSE-traders-86-1.jpg?w=1024\" alt=\"Worried NYSE trader\" class=\"wp-image-22387837\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/NYSE-traders-86-1.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/NYSE-traders-86-1.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/NYSE-traders-86-1.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The Nasdaq is in bear market territory.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>\u201cMonetary policy has historically stopped tightening about three months before equities bottom, and shifted to easing about two months afterwards,\u201d she added, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-05-24\/goldman-s-chang-says-stocks-will-bottom-once-fed-signals-shift\">according to Bloomberg.<\/a><\/p>\n<p>The Fed has twice hiked its benchmark rate this year, most recently with a larger-than-normal 0.5% increase in April.<\/p>\n<p>Top banks and Wall Street analysts expect the central bank to enact several more rate hikes throughout the year in a bid to tame inflation that reached 8.3% last month. Fed Chair Jerome Powell has signaled that similar 0.5% hikes are likely after FOMC meetings in June and July.<\/p>\n<p>\u201cA shift to Fed easing is unlikely without a clear move into recession, but \u2014 as in late 2018 \u2014 a clear signal that tightening risks are receding may be sufficient,\u201d Chang added.\u00a0<\/p>\n<p>Stocks have steadily fallen as investors react to the Fed\u2019s plan, ongoing supply chain disruptions related to the COVID-19 pandemic, the Russia-Ukraine war and other factors that have destabilized the global economy.<\/p>\n<p>The Fed\u2019s handling of the situation has drawn some criticism from prominent economists, including Mohamed El-Erian, who warned last week that stagflation is now \u201cunavoidable\u201d and the likelihood of a recession has increased. <\/p>\n<p>The Dow Jones Industrial Average has fallen about 13% so far this year. The tech-heavy Nasdaq has sank about 30% and entered bear territory, defined as a decline of 20% or more from a recent high. The broad-based S&amp;P 500 is down about 19%.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/goldman-sachs_08.jpg?w=1024\" alt=\"Goldman Sachs logo\" class=\"wp-image-22387834\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/goldman-sachs_08.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/goldman-sachs_08.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/goldman-sachs_08.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>A Goldman Sachs strategist said the selloff will keep up until the market unless the Federal Reserve eases its efforts to tighten monetary policy.<\/figcaption><figcaption><span class=\"credit\">SOPA Images\/LightRocket via Gett<\/span><\/figcaption><\/figure>\n<p>Last week\u2019s downturn occurred after several top retailers warned that inflation was cutting into their profits. Big-box retail giant Target suffered its worst single-day loss since 1987 after a weak earnings report.<\/p>\n<p>Prominent tech stocks and leading cryptocurrencies are also under pressure as investors shed riskier assets.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/05\/24\/goldman-sachs-says-stocks-will-slide-until-fed-clarifies-policy\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Goldman Sachs says stocks will slide until Fed clarifies policy&#8221; A lengthy losing streak for US stocks is likely to continue until the Federal Reserve reveals the endpoint of its effort to tackle inflation by tightening monetary policy, according to a Goldman Sachs analyst. Major stock indices have finished lower for seven consecutive weeks \u2013&#8230;<\/p>\n","protected":false},"author":1,"featured_media":452070,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/NYSE-traders-84-1.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[129578,73977,70550,73785,80348,70359,127049],"class_list":["post-452069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-5-24-22","tag-dow-jones-industrial-average","tag-federal-reserve","tag-markets","tag-sp-500","tag-stocks","tag-the-fed"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/452069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=452069"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/452069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/452070"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=452069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=452069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=452069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}