On Friday (10/7/22) the September jobs report was made public and although stronger than anticipated, which was good news, it adversely affected the stock market due to a strong incentive for the Federal Reserve to continue to increase interest rates. With the inflation rate above 8% (8.3% currently) the Fed has continued to signal their aggressive moves to bring inflation down to 2%.. The current rate sits at 3.25% however they (the Federal Reserve) are signaling that another hike of ¾ % could occur in November. More bad news for the markets.
Added to this depressing news are the strong indications that we are about to enter a severe global debt crises. The situation in Ukraine along with Putin’s threat of going nuclear are further upsetting the equity markets.
The S&P500 rose early last week and was not erased completely by week’s end when the markets were selling off once again, confirming the continuing existence of the Bear Market. Based on the indicators being watched, it would appear that the bottom of the S&P500 could be around the 3,300 mark (as of 10/7/22 the S&P500 stood at 3,639)