Stock Market Investors Just Got Bad News About President Trump's Economy. It Hints at a Big Move in the S&P 500 and Nasdaq.
The Federal Reserve is expected to raise interest rates twice by year-end -- history suggests that tighter monetary policy could trigger a stock market correction.
Overview
The S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) are up 8% and 6%, respectively, year to date. But whether the stock market can maintain its momentum is questionable.
Investors recently got some bad news about President Trump's economy: As of July 28, oil prices have risen 30% month to date amid renewed hostilities between the U.S. and Iran, and the market now anticipates two interest rate hikes from the Federal Reserve this year.
Details
History suggests that a shift in monetary policy will drag the S&P 500 and Nasdaq Composite into correction territory. Here are the important details.
Source
Originally published at www.fool.com.
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