The Wall Street massacre will continue, analysts warn

On Monday, US indices fell by 1%, which predicted continued Wall Street's "bloody series" by the end of the year. According to analysts and strategists, investor sentiment continues to weaken as a result of stopping the government's work, and there is no immediate solution to the problem on the horizon.

In December alone, the S & P500 lost 13% of its value. The index is about to record its steepest month-long downturn since October 2008, after fears of a possible economic slowdown in the new year have hit Wall Street. Latest comments with a note of concern that raised the attention of market participants from FedEx Copr. further frightened investors. FedEx voiced concern about growth, trade war and signs of weakness in the European economy. Investors begin and assess the implications of a possible Fed's mistake in its policy as well as the slowdown in the Chinese economy.

Bearing in mind the bearish sentiment, an escalation of the crisis with the government will bring only one thing: more sales. Lack of positive news will further stifle the desire for risk. The mood is beginning to change to a growing fear, which makes investors pretty much use it as an excuse to sell.

The next possible vote on the Trump wall may happen on December 27, but the Democrats do not give any sign of retreating.

Stopping the work of the US government will also have a very negative impact on defensive actions. They even suffered a serious blow after Defense Secretary James Mattis resigned after Trump's decision to withdraw US soldiers from Syria.

However, leaving Mattis may also have serious negative consequences for the 2020 budget negotiations, which is already being questioned by the current division in the Senate.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

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