Nomura Research discusses the latest market conditions and flags a scope for the recent risk to fizzle out in the near-term.

"In the US stock market, neither sentiment nor major market indices registered anything like a forceful rebuke of the Fed by market participants, but it does seem that the willingness to take on risk took a slight hit, as factor performance revealed that investors reacted by selling value and high beta while buying momentum and quality," Nomura notes. 

"Going by the pattern traced by our gauge of US stock market sentiment, we have argued that the risk rally that has been underway since the beginning of the month is likely to fizzle out in the absence of fresh fuel in the form of some new good news for the market during the week of 16-23 September,"Nomura out.