The U.S. stock averages are expected to witness two consecutive weeks of losses commencing from Monday, March 18, 2024 due to economic uncertainty and global geopolitical unrest. Major market indicators, including the Dow Jones Industrial Average and S&P 500 Index, predict a downward trend, igniting concerns of a potential market correction.
Investors are urged to make strategic investment decisions and closely follow market trends as lengthy losses are expected. With speculation of a Federal Reserve meeting, threats of a U.S. government shutdown, and confirmation of Vladimir Putin’s re-election in Russia, investors are advised to be cautious.
Further, the Federal Reserve’s potential extension of interest rate hikes has caused concern among investors. They worry an abrupt increase in rates could trigger a recession, irrespective of predictions the current rates will remain constant. In view of this, the Federal Reserve’s navigation of these circumstances is being closely watched.
Additionally, the possibility of a partial U.S. government shutdown is causing anxiety. Failing to approve spending measures by Friday could disrupt funding in major departments such as Defense, Treasury, and State. This underlines the gravity of the situation.
Internationally, Putin’s re-election has drawn criticism especially due to the lack of transparency and the suppression of opposition voices during the election. However, Putin continues to enjoy popularity within the country despite these criticisms.
Lastly, Novo Nordisk’s new weight loss medication, Wegovy, is under scrutiny due to its limited coverage. Even though it’s approved in the U.S., its market penetration remains low. This emphasizes the importance of thorough analysis and strategic planning for investors in the forthcoming trading week.
