Seventh Quickest Move to an S&P 500 Correction Since 1929

The U.S. equity market rapidly enters correction territory

Highlights

• The U.S. equity market rapidly enters correction territory

• Corporate bond spreads widen in a sign of fragile financial conditions

• Gold on the verge of hitting our $3,000 target

• Even high-income consumers are starting to come under pressure

Key Takeaways

• Markets Rebound, But Damage is Done: Stock markets globally are ending the week on a firm note, underpinned by signs that the Senate will pass the stopgap funding bill and rising hopes of fresh policy stimulus out of China. But much damage has been done. The S&P 500 closed down -10.1% from the nearby peak (in barely a month, meeting the traditional definition of a correction — the seventh quickest move to official correction terrain since 1929).