- Concerns about the global economy and the path of interest rates sapped the strength of a blistering second-quarter rally, sending stocks lower on Monday.
- A 1% drop in Europe's main equity index affected almost every industry. Sartorius AG, one of the biggest individual movers, fell 15% after issuing a larger-than-expected profit warning. In Asia, disappointed expectations for additional stimulus pushed down Chinese technology companies.
- With the path of interest rates becoming increasingly uncertain, traders are torn between the allure of the rally and the fear that it has peaked and the market has become overbought.
- The rally on Wall Street has now erased more than a year of Fed-induced losses, with stocks, volatility, and the dollar recouping the effects of ten rate hikes. The S&P 500 index has just completed a fifth week of gains and is now higher than it was on the day the Federal Reserve began its campaign.
