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The Two Biggest Risks to the 2023 Year-end Rally

The Two Biggest Risks to the Rally Until Year-end: Strengthen your market knowledge with a free trial of The Sevens Report.


What’s in Today’s Report:

  • The Two Biggest Risks to the Rally Until Year-end
  • Weekly Market Preview: Three Pillars of the Rally Remain Intact (For Now)
  • Weekly Economic Cheat Sheet – Service Sector Data in Focus

Stock futures are modestly lower with most global markets this morning amid renewed global growth concerns.

Economic data disappointed overnight with China’s Service PMI falling to a 2023 low of 51.8 vs. (E) 53.7 in August while the Eurozone Service PMI declined to 47.9 vs. (E) 48.3. The soft data rekindled global recession concerns putting risk-assets under pressure as we start the holiday shortened trading week.

Today, two second-tiered economic reports are due: Motor Vehicle Sales (E: 15.6M) and Factory Orders (E: -2.6%). But, neither are likely to meaningfully impact markets.

No Fed officials are on schedule to speak today. The Treasury will hold auctions for 3-Month, 6-Month, and 52-Week Bills late this morning. The results of the auctions could shed light on the market’s outlook for Fed policy plans in the months ahead. However, weak demand leading to a rise in short-duration yields will be viewed as hawkish which has the potential to put additional pressure on equity markets and risk assets today.

Risks to rally


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