U.S. stocks fell sharply today after reports Spain had postponed a decision on requesting a sovereign bailout.
And, investors could be setting themselves up for a fall in looking to Federal Reserve Chairman Ben Bernanke for a definitive signal that the Fed would announce another round of monetary easing at its September meeting.
“Many market observers are not expecting any great revelation about QE3 tomorrow from Bernanke. I expect we will hear the same old, same old ‘it’s data dependent and we are ready to act if necessary,’” emailed Elliot Spar, market strategist at Stifel, Nicolaus & Co. “From a traders’ perspective, I’d rather be flat ahead of the speech,” he added.
“There are a lot of expectations built into his talk,” Jack Ablin, chief investment officer at Harris Private Bank in Chicago, said of Bernanke’s speech scheduled for tomorrow in Jackson Hole, Wyo. See three reasons why the Fed won’t move in September.
Read more: Europe's financial woes and new speculation over Fed send U.S. stocks plunging | NJ.com
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