ChainCatcher news: According to Michael Hartnett, chief strategist at Bank of America, the turmoil in global financial markets has not yet reached the level that triggers concerns about a hard landing of the economy.
The S&P 500 Index (SPX) has fallen about 6% since its record high in mid-July. The benchmark stock index remains above the 200-day moving average of around 5,050 points, while the U.S. 30-year Treasury yield has not fallen below 4%.
Michael Hartnett wrote in a memo, "The technical level that can turn Wall Street's narrative from a soft landing to a hard landing has not been broken. Although investors' feedback is 'fatigue', expectations of a Fed rate cut mean that the preference for stocks over bonds has not ended with the market crash."