Minutes of the previous meeting of the Federal Open Market Committee of the Federal Reserve did not lead to an increase in volatility on the U.S. market. Most of the members of the Committee noted that the housing market remains quite weak, the prospects of economic growth are positive, and the labor market is gradually recovering. In addition, in the minutes was noted the need for further tightening of monetary policy. Among the named risks are the slowdown on the housing market, slower growth in China and the tense situation in Ukraine.
It is worth noting that in the summer, the activity of traders traditionally declines, and many will fix their positions, which may lead to a decrease of the major stock indexes. In addition, experts noted the lack of incentives for further growth in connection with the end of corporate reporting season.
We reserve the medium and long term negative outlook for the U.S. stock market.