Equities rebounded Thursday after a sharp sell-off Wednesday driven by the Fed’s 25 basis point rate hike and Chairman Kevin Warsh’s remarks on persistent inflation risks. The Dow Jones fell more than 600 points Wednesday before gaining approximately 300 points Thursday, while the S&P 500 and Nasdaq advanced 1% and 1.3% respectively. Strategists at Citadel Securities and JPMorgan recommend caution, believing technical conditions and supply/demand dynamics remain unfavorable in the near term. Historically, September is the weakest month for stocks, with the S&P 500 averaging a 0.7% decline since 1950. JPMorgan maintains a tactically cautious and neutral stance pending lower bond yields and oil prices.
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