On Monday, the 17th of December, almost all of the major indices of Wall Street had glided downwards over 2 percent, while the benchmark standard & poor 500 had closed the session at its 14 months low, however, the recent market aversion is expected to be altered after Wednesday’s, the 19th of December, FED meeting.
None the less, S&P 500 along with Dow Jones Industrial had fallen on growing concerns of a sluggish economic growth and tightened economies all over the world. However, a large-scale global stock rally is expected after Wednesday’s year ending FED policy meeting, as a rate hike is highly unlikely to happen.
The S&P 500 had been smashed in to its October 2017 low, wiping out almost $3.4 trillion of market value, as the Small Cap Russell 2000 index had confirmed a complete bearish pattern, with over 50 percent stocks dipping 20 percent from their Aug 31 closing high.
On Monday, the December 17th, nearly 2000 stocks on the New York Stock Exchange as well as Nasdaq composite hit their yearly lows and the market had experience its worst performance in nearly three years. However, the investors have been cautiously optimistic over a global-scale stock rally, as the US FED chair Jerome Powel is highly unlikely to hold on to his hawkish rate decision amid pressures from US lawmakers including US president Donald Trump himself.
A senior market strategist at LPL Financial, Ryan Detrick said, “We’re all holding our breath for the Fed. If the Fed takes its foot off the pedal for the first half of next year, that would get rid of one uncertainty”.