Investors are shifting their focus to the Federal Reserve’s monetary policy meeting next week as they seek cues following a recent technology-led U.S. market sell-off. That’s left investors looking to the Fed for its view of the nascent U.S. economic recovery and what the central bank may do if markets continue to slide. Despite stocks’ recent slide, some market participants believe equities would have to tumble much further for the Fed to act. The number of Americans filing new claims for unemployment benefits hovered at high levels last week, suggesting the labor market recovery from the COVID-19 pandemic was stalling as government financial aid to businesses and the unemployed dries up. The bank’s data also shows that markets tend to dip in the weeks ahead of an election, then rallying after.

Source: Mint September 11, 2020 18:22 UTC