(C) Reuters. What Happens to the Market If Congress Won’t Raise the Debt Ceiling?
Fall officially started today, and after a deep bull run this year, the S&P 500 (SPY) has been experiencing an increase in volatility due to several concerns. This includes the Delta variant of COVID, the wariness before today’s Fed meeting, a potential crash in China real estate, and the potential that Congress won’t raise the debt ceiling. However, for today, stocks bounced back as investors reacted positively to remarks from the Fed. So, where does that leave investors? I’ll discuss this and more below….(Please enjoy this updated version of my weekly commentary published September 22, 2021 from the POWR Value newsletter).
Since my last commentary, the market fell last Thursday even after a better-than-expected report on retail sales. The Commerce Department’s August retail sales report showed overall sales rose by 0.7% after a 1.8% drop in July. This suggests that consumer spending held up despite concerns over the Delta variant of COVID.
While new unemployment claims posted an unexpected slight gain, rising to 332,000, this is still a low figure during the pandemic. Then, a new report showed that consumer sentiment missed estimates in early September and is near a decade low due to continued concerns over inflation.
What Happens to the Market If Congress Won’t Raise the Debt Ceiling?
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