Economic security

Stocks slammed; Fed rate hike in limbo?; Hedge funds pounded

Is a new reality dawning? Wall Street banks are now cutting their market forecasts after August’s steep drop. Morgan Stanley (MS) dropped its S&P 500 target, citing slowing growth and likely Fed rate hike, following a similar cut by Credit Suisse (CS) cut last week.

Wall Street’s supposed biggest and brightest aren’t finding things any easier.  Hedge fund heavyweights like David Einhorn of Greenlight Capital, Daniel Loeb of Third Point, and Bill Ackman of Pershing Square are taking a beating in August, right alongside the broader market.

Another area bringing worry to the markets - crude oil’s tumultuous ride. After a steep rise over the past three days, oil’s trimming those gains today on the back of weak China manufacturing reports.