S&P 500 Dips as Investors Brace for CPI Data, Earnings, and Hurricane Impact
Meanwhile, insurance stocks with significant hurricane exposure saw sharp declines. Allstate, Travelers, and Chubb fell more than 3%, while Progressive and AIG slid over 1%. Universal Insurance, based in Florida, plunged 15% as it faces increased risk from Hurricane Milton. Joshua Shanker, a research analyst at Bank of America, warned that property and casualty insurers and reinsurers could see a significant hit to fourth-quarter earnings due to the storm.
Key Events Awaited: CPI Data and Earnings Season
Later this week, investors will closely monitor consumer price index (CPI) data due on Thursday and comments from several Federal Reserve officials. Additionally, third-quarter earnings season kicks off on Wednesday, with major banks set to report. Wall Street will watch these earnings reports closely, as the S&P 500 is up 20% year-to-date and stands near record highs.
Market Forecast
The market faces a turbulent short-term outlook as rising yields, geopolitical instability, and hurricane-related risks cloud the environment. Sectors like technology and insurance could remain under pressure, while energy and defensive stocks may benefit from ongoing geopolitical and weather-related uncertainties. Traders should brace for continued volatility, with downside risks persisting as markets grapple with multiple headwinds.