On Friday Jerome Powell said that the Fed is moving ‘purposefully’ to a level sufficiently restrictive to return inflation to target. The September hike is going to be dependent on the totality of the data since July’s meeting. This was seen as throwing cold water on the idea of the Fed pivoting and sending stocks lower.
Does this hawkish stance from Powell mean that the Nasdaq’s weak seasonals are perfect for a short position?
Major Trade Risks: The major risk is that Jerome Powell signals a more dovish approach and that will likely help the Nasdaq recover.
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