Uncertainty over banks and Fed policies weighs heavily on US stock market

Investors are settling in for a long slog in the U.S. stock market in coming months, braced for more tumult in the banking sector and worries over how the Federal Reserve’s tightening will ripple through the economy.

Banking sector concerns drove sharp moves in financial stocks in the United States throughout the week after the collapse of two U.S. lenders and last weekend’s Swiss-government-orchestrated takeover of troubled Credit Suisse by rival UBS.

Many worry that other nasty surprises are lurking as the rapid series of interest rate hikes the Fed has delivered over the past year dry up cheap money and widen fissures in the economy.

Source : Uncertainty over banks and Fed policies weighs heavily on US stock market