When good news is bad news for the market
Stocks plunged Friday after the latest government data showed a hot U.S. labor market that likely ends any doubt that the Federal Reserve will maintain its aggressive policy of raising interest rates by 75 basis points later this month. Nonfarm payrolls increased...
Brace for impact as layoffs begin
In response to the continued hawkish position of the Fed and their desire to slow down the economy, the first signs of material cracks in the economy started to show as a series of companies began to trim their workforce - JP Morgan to lay off 1000 workers, Compass to...
There will be blood – Fed’s mistakes will cause real pain
Investors fled for the exits on Friday, driving a selloff in both stocks and bonds to cap a brutal week, as the market transitioned quickly from worrying about stubbornly high inflation to a sense of rising alarm over the Federal Reserve's aggressive tightening...
Who Is Going To Get This Right? The Fed Or The Market
The S&P 500 posted its worst weekly performance since mid-June, slumping 4.78% for the five-day session. The losses came on the back of a solid 3.65% gain last week. The selling pressure started on Tuesday after a hotter than anticipated consumer price inflation...
A Pavlovian Response to the Fed
U.S. stocks rallied on Friday and major indexes snapped a three-week losing streak as investors continue to factor in the expectation for higher interest rates just around the corner. All 11 sectors in the S&P 500 closed in the green for the week, with the...
The Job market is fighting the Fed
Hiring slowed sharply in August but remained sturdy as employers added 315,000 jobs despite softer consumer spending gains, rising interest rates and a sputtering economy. The unemployment rate rose from 3.5% to 3.7%. In his speech at an annual symposium in Jackson...
What the Fed wants, the Fed gets
Chairman Jerome Powell, in highly anticipated remarks from the annual Jackson Hole policy meeting, said in no uncertain terms that interest rates will keep rising and aren't likely to come down soon. But that's where the certainty ended. The size of a September rate...
Only the Fed can derail this stock market rally
The week started positively with the stock market continuing its rally despite retailers warning of slowdown, semiconductor companies cautioning on outlook and housing market cracking as expected. But, the resilience of the stock market rally was broken by comments...
Peak Inflation could signal the beginning of another bull market
July’s CPI (Consumer Price Index) reading of 8.5%, a significant drop from June’s number of 9.1% coupled with surge in consumer confidence injected euphoria into the markets. With first signs of decline in inflation, the Fed must rethink its quantitative tightening...