Traders in the market have expressed caution regarding the future of Federal Reserve policy, causing shares of industrial and transportation companies to decline. The release of the minutes from the Fed’s July meeting later this week is expected to be a determining factor in the short term. Inflation, identified as a key risk, has also been a point of concern among analysts.
Brent Schutte, Chief Investment Strategist at Northwestern Mutual Wealth Management, stated, “While a sustained uptick in productivity or a sharp increase in the number of available workers could alleviate wage pressures, we have seen little evidence to suggest either is likely to occur.” Schutte believes there is a risk that companies may feel obligated to raise wages due to competitive pressure in attracting workers, citing recent wage increases for workers at United Parcel Service as anecdotal evidence.
Nikola, an electric truck maker, experienced a significant decrease in stock value after recalling hundreds of trucks due to the potential risk of battery fires.
