Why do American stock investors fear the next interest decision?

February ended up volatile for investors, and it was included in a weak reading of the consumer confidence index, a weak report on consumer spending and sale in many strong deals that define market movements this year.
On this topic, we review the expected track of shares during the month of March and beyond, according to the American “Yahoo Finance” network.

Fears of economic decline

“The fear among many investors now is that the economy may slow down faster than what the Federal Reserve Bank may be ready to respond to it and is a difficult situation.”
Also read: After the Red February .. What are the expectations of American stocks for the first trading in March?

American stock indicators declined

During the past month, the Nasdak compound index, which was dominated by technology shares, decreased by about 4%, while the S & B 500 and the Dow Jones Industrial Mediterranean decreased by 1.4%.
Sosnik pointed out that the Dow Jones Index was in recent days the most relatively best performance among the main American stock indicators due to its low weight towards the names of technology and momentum that plays a greater role in the indicators of its counterparts.
As a result, the defensive steps had a more clear impact on the Dow Jones index compared to the S & B 500 index.

Less investments in stocks

Sosnik also said: “This is an appropriate environment either to reduce investment in stocks or collect a little money, which is not bad in the absolute, given that the money generates a return of about 4%.”
Also read:
“But if you want to continue investing, you may want to move more towards shares with low risks and high -yield shares because it is slightly isolated from the mentality of avoiding risks in the market at the present time.”

Fears shaking the stock market

About whether the market is vibrating due to concerns about economic growth or that it is witnessing a mere rotational situation in which investors moved away to assess matters, so the situation appears and it is a discussion that will determine the last month of the first quarter.
In a recent memorandum, Ed Yardini, Eric and Ractein from the Yardini Research Foundation wrote: “The stock market is now in the midst of another state of fear of growth, as the last batch of economic indicators was weak and the current degree of fear is reminiscent of what happened to us last summer.”

Useful interest rates and stock movements

Neil Dutta, head of the Economy Department at Rennessance Macro, warned that the economy seems to be declining with the decision of the American Federal Reserve to keep interest rates high in equivalent “a negative tightening of monetary policy and this is the prevailing danger that has important effects on investors in financial markets.”

Financial stock performance

“Many winners are now being excluded. You know if the story of a real recession is expected to be less than expected and we will not see Europe excel in performance. There are many ongoing things that are not really consistent with growth concerns.”
Dutta also believes that if investors begin to act more powerful based on these signals that indicate poor economy, a change in how investors will be placed to their investment portfolios.
“If there is a tremendous tightening of monetary policy, this will put more downward pressures on economic growth and investors should lead to taking more defensive positions in the stock markets and in my opinion, this may mean a direction of basic consumer goods and perhaps accompanying.”

Stock trading this week

US stock futures increased during Sunday’s trading amid the continuation of the uncertainty surrounding US President Donald Trump’s plans about imposing customs duties on major commercial partners for the United States this week.
The Dow Jones Industrial Futures Futures increased by 77 points, and the futures for the Standard & Poor’s 500 index increased by 0.2%, while the Nasdaq 100 futures futures increased by 0.6%.

The effect of customs definitions

The Minister of Commerce, Howard Lottenic, said on Sunday on the Fox News channel that the customs tariff that will be imposed on Mexico and Canada starting on Tuesday is still “changing”, which means that it may be less than the proposed percentage of 25%.
He added that the 10% additional customs duties on Chinese imports are “specific”.

Stocks

On the other hand, the Asia and Pacific markets rose as investors are waiting for clarity over US President Donald Trump’s plans to impose customs duties this week.
The Standard Nikai 225 index of Japanese stocks increased by 1.36%, while the broader Topics index provided 1.27%, while the Hang Sing Index in Hong Kong increased by 1.33%, while the CI3 index in China increased by 0.44%.