empty
13.09.2022 02:28 PM
Investors fleeing stocks amid signs of recession

While markets are waiting to see how inflation will affect the US economy and the actions of Fed's policymakers, investors are fleeing stocks amid signs of a recession, with stock investments at an all-time low and monetary risks at an all-time high. That's all according to a report from Bank of America. According to a survey of the bank's fund managers, which included 212 participants with $616 billion under management for the week through Sept. 8, 52% of respondents said they were underweight equities, while 62% were overweight cash.

This image is no longer relevant

As fears about the economy escalate, the number of investors expecting a recession has reached its highest level since May 2020. A research note by Michael Hartnett points out that market sentiment is "super bearish" as the energy crisis further affects risk appetite. 42% of global investors are underweight in European stocks, the largest position ever. The decline in equities stems from fears that central banks will remain hawkish for an extended period of time and thus lead the economy into recession.

Strategists at leading banks, including Deutsche Bank AG and JPMorgan Chase & Co. also note bleak investor sentiment, and say that real entry into the stock market should be expected only by the end of this year.

Premarket

Rent the Runway dropped by 22% after the company reported it was laying off 24% of its employees. In addition, Rent the Runway said it was cutting expenses to $27 million from $25 million to deal with an uncertain macroeconomic environment.

Oatly's stock fell by 1.8% after Credit Suisse downgraded the company from "better" to "neutral," saying rising inflation in Europe and Asia would hurt the Swedish company's competitiveness.

Shares of Nintendo, the gaming company, jumped by 5% after the news that its new game broke domestic sales records.

Oracle gained 1.6% in premarket trading after the company reported revenue in line with expectations. Revenue in the latest quarter jumped by 18% compared with the same period last year.

Adobe shares fell by 0.4% after BMO Capital Markets downgraded the company, saying there were concerns about the long-term durability of Adobe Creative Cloud.

As for the technical picture of the S&P 500, the index continues to rise for the fifth straight day, taking advantage of the positive news. If the asster breaks through $4,150, it may continue an upward correction. A test of this level is likely to support the uptrend seen since the middle of this summer. The target is located at an important resistance of $4,184. The next target will be the area of $4,208. If the instrument pierces $4,116, it may drag it down to $4,091 and the low of $4,064. From that level, the S&P 500 may touch the area of $4,038, where the pressure on the index might ease a little.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Calm above, crisis below: markets weigh oil, inflation, and Middle East risks

The US stock market is showing mixed performance, reflecting investors' ambivalent outlook after the holiday break. In the latest trading session, the S&P 500 slipped 0.03%, while the Nasdaq rose

Anna Zotova 13:29 2025-06-19 UTC+2

Update on US market on June 19. Federal Reserve downgrades its economic outlook. Stock market awaits correction

S&P500 Snapshot of major US stock indices on Wednesday Dow -0.1%, NASDAQ +0.1%, S&P 500 -0.1%, the S&P 500 closed yesterday at 5,981 trading within the range of 5,600

Jozef Kovach 12:43 2025-06-19 UTC+2

Stock Market as of May 19th: S&P 500 and NASDAQ Decline After Fed Meeting

At the end of the previous regular session, U.S. stock indices closed mixed. The S&P 500 fell by 0.03%, while the Nasdaq 100 rose by 0.13%. The Dow Jones Industrial

Jakub Novak 10:54 2025-06-19 UTC+2

Stock Market on May 18th: S&P 500 and NASDAQ

At the close of the most recent regular session, U.S. stock indices ended in decline. The S&P 500 fell by 0.84%, while the Nasdaq 100 dropped by 0.91%

Jakub Novak 11:53 2025-06-18 UTC+2

All eyes on Powell, but geopolitics may steal spotlight

The market is at a standstill. With the Fed's decision looming and growing political pressure from two fronts — monetary and geopolitical — market participants are bracing for a sharp

Anna Zotova 11:27 2025-06-18 UTC+2

Playing on edge: can markets ignore geopolitics for another day?

The US stock market continues to disregard geopolitical realities. Indices have approached key levels and are ready for a breakout. The only question is, in which direction? If upcoming events

Anna Zotova 13:27 2025-06-17 UTC+2

Stock Market on May 17th: S&P 500 and NASDAQ

At the end of the last regular session, U.S. stock indices closed higher. The S&P 500 rose by 0.94%, while the Nasdaq 100 gained 1.55%. The Dow Jones Industrial Average

Jakub Novak 11:56 2025-06-17 UTC+2

Update on US stock market on June 17

S&P500 Snapshot of major US stock indices on Monday: Dow +0.8%, NASDAQ +1.5%, S&P 500 +0.9%, S&P 500 at 6,033 in an intraday range of 5,600 to 6,200. On Monday

Jozef Kovach 10:45 2025-06-17 UTC+2

Market on front line: inflation, missiles, and corporate reports: which will bring stock market down first?

The US stock market stands at a crossroads. It has shown strength by recovering from panic sell-offs but has yet to deliver a clear signal for a sustained trend

Anna Zotova 17:05 2025-06-16 UTC+2

US market amid Israel–Iran war

S&P 500 Overview on 16.06 US market amid the Israel–Iran war Key US indices on Friday: Dow -1.8%, Nasdaq -1.3%, S&P 500 -1.1%, S&P 500 at ,5977, range 5,600–6,200

Jozef Kovach 13:52 2025-06-16 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.