Inflation Geopolitical Headwinds Pressuring Equities
The market is struggling amid negative cross currents from inflation and geopolitical issues.
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"Mohamed El-Erian paints a picture of a 'striking divergence' between record-breaking stock markets and a fraying global economic backdrop."
"U.S. stocks slumped after a report said inflation was primed to worsen even before the war with Iran sent oil prices spiking."
"The U.S. military is deploying a wide range of forces in the Middle East... escalating U.S.-Iran tensions weighed on sentiment."
""We really continue to see that growth resilience story, and I think that's difficult for the market simply because there's concern about what that could mean both for rates and inflation.""
"Stocks have cooled in August since soaring 19.5% through the first seven months of the year."
"Geopolitical tensions also were weighing on sentiment, it said, after the U.S. and other western countries imposed new sanctions on Russia for its war on Ukraine."
""Secondly, geopolitical tensions are rearing their ugly head once again - with flashpoints in Europe, the Middle East and East Asia.""
"The combination of soaring inflation, geopolitical conflict, Fed rate hikes, and ongoing pandemic snags have made for volatile and uncertain markets."
"Stocks struggled during the month amid the negative cross currents."