Art Cashin of UBS says stocks are now at risk of even deeper sell-off
[ad_1]
Art Cashin, UBS’ floor director for Europe and the Middle East said Wednesday’s big stock market fall has made it more vulnerable to a further pullback. CNBC’s Power Lunch featured the testimony of a veteran trader, who stated that the stock markets are near a “critical” point. I think that we have yet to experience the real lows. They’re coming. Cashin stated that we have to get through this. Cashin said that the market taking out its previous lows, which would be 3,930 on a closing level and 3,858 on an intraday level for the S & P 500, could signal that stocks may be entering a “free fall” period. You don’t want to see stocks fall below their previous lows. He said that this would make many people even more anxious. Wall Street suffered a tough April. The selling continues in May. The S & P 500 settled around 3,924 on Wednesday to set a new closing low for the year. According to Cashin, traders have been rattled by events such as the rising 10-year Treasury yield exceeding 3% and the steep sell-off of bitcoin in recent weeks. This has contributed to stock market declines. The fear of a crisis systemic was resonating in everyone’s minds, Cashin said. Cashin stated that when bitcoin is weak, it makes the market more volatile. Retail sector was responsible for Wednesday’s declines. Some of the largest chains fell amid growing concerns about inflation, energy costs, and consumer spending. Cashin stated that the surprise earnings from Target and Walmart also stunned the market. Target’s shares dropped almost 25% Wednesday following Target’s announcement of a decline in its first-quarter profit and warnings about an increase in prices. Cashin stated that Target has two of the most successful retail merchandisers around the globe, but they admit to having missed some aspects of it. Cashin advised investors not to panic, despite possible further falls. Don’t place bets on the end. This only happens once and those are very good odds. However, he cautioned that you should be careful.
[ad_2]