The U.S. market opens the week down. The S&P 500 index is down 1.1%. Investors are gently moving back into dollars as they await the rate decision. Tesla is leading the decline. The company’s stock is losing nearly 4.5% after Bloomberg reported on Tesla’s plans to cut production at its gigafactory in Shanghai.
Major banks are also urging markets to be cautious. Michael Wilson of Morgan Stanley, one of the most ardent skeptics of the U.S. stock market, said investors are better off “locking in profits.” He expects bearish sentiment to take over trading in the near future. Meanwhile, the chief investment officer at UBS thinks the economy will grow even slower than planned in 2023.