Macro Risk Advisors Warns of S&P 500 Correction

Macro Risk Advisors LLC warned that potential Federal Reserve rate hikes starting this week could trigger an 8% to 10% correction in the S&P 500. CEO Dean Curnutt stated the current market setup resembles 2018, suggesting a potential second leg of decline in December and a volatility shock for companies unable to pass through costs.

Traders are currently pricing in a quarter-point rate hike by Federal Reserve Chairman Kevin Warsh for Wednesday. The warning follows a nearly 1% drop in the S&P 500 during September, driven by inflation data and 10-year U.S. Treasury yields reaching their highest levels in nearly two decades.

In separate business developments, Verizon Wireless and T-Mobile US agreed to dismiss mutual lawsuits regarding misleading advertising campaigns. Additionally, Costco Wholesale nearly doubled the price of its Kirkland Signature full-synthetic motor oil and introduced purchase limits due to rising crude oil prices and lubricant shortages.