Are markets underestimating how far the Fed must go to tame inflation?

Are markets underestimating how far the Fed must go to tame inflation?

The Federal Reserve isn’t even four months into its latest interest-rate-hiking cycle, and yet investors are already pricing in rate cuts as soon as next year, the latest sign that the market is bracing — or perhaps rather hoping — for a swift return to the easy-money monetary policy that helped drive the roaring stock … Read more

Expect the stock market to be driven ‘more by earnings than the macro,’ says Morgan Stanley’s Wilson

Expect the stock market to be driven ‘more by earnings than the macro,’ says Morgan Stanley’s Wilson

Earnings season will be a key test for the stock market after the S&P 500 last week closed out its worst half-year performance since 1970, said strategists from Morgan Stanley. The direction of stocks going forward will be mostly tied to second-quarter earnings as interest rate hikes and surging inflation reflect the growth slowdown more … Read more

With prices skirting a 17-month low, Dr Copper’s prognosis about the global economy is downbeat

With prices skirting a 17-month low, Dr Copper’s prognosis about the global economy is downbeat

Dr Copper has graded the global economy, and noted: “must do better.” The red metal is wryly considered by commodity watchers to hold a Ph.D in economics, because its use in a range of sectors, including home appliances, power generation and cars, helps it predict the trajectory of global growth. So, copper’s price initial drop … Read more

Michael Burry of ‘The Big Short’ fame thinks the market selloff may be ‘halfway there’

Michael Burry of ‘The Big Short’ fame thinks the market selloff may be ‘halfway there’

Blink and you’ll miss market-missive tweets doled out sparingly from Michael Burry, the investor who rose to fame after correctly predicting the collapse of the US market. In his latest now-you-see-it-now-you-don’t tweet, the founder of Scion Asset Management appeared to be flagging that markets may be halfway through the recent selloff, following a bleak first … Read more

Recession fears are slamming the stock market. This GDP tracker explains why.

Recession fears are slamming the stock market.  This GDP tracker explains why.

Fears of a sharp slowdown are getting the blame for the stock market’s renewed slide while also driving a retreat in Treasury yields. A look at a regional Fed bank’s closely followed economic-growth indicator may justify investor jitters, said a top Wall Street researcher. The Federal Reserve Bank of Atlanta’s GDPNow model on Friday forecast … Read more

Stock Futures Suggest More Losses as Markets Wrap Worst First Half Since 1970

Stock Futures Suggest More Losses as Markets Wrap Worst First Half Since 1970

Text size As they begin July, traders are still stuck in a bear market. NYSE After a bruising first half for investors, the start of July isn’t promising any big breaks. US stock futures were down in after-hours trading after the major indexes closed lower on Thursday, capping the S&P 500’s worst first half in … Read more

S&P 500 falls for 3rd straight day after Powell says no guarantee of soft landing for US economy, JP Morgan warns of recession risk

S&P 500 falls for 3rd straight day after Powell says no guarantee of soft landing for US economy, JP Morgan warns of recession risk

US stock indexes end mixed Wednesday, as investors focused on remarks by central bankers and from corporate executives, while fretting that soaring inflation is damaging the world’s biggest economy. How did stock indexes do? The Dow Jones Industrial Average DJIA rose 82 points, or 0.3%, to end at 31,029.31. The S&P 500 SPX edged down … Read more

What the dollar’s historic surge means for markets as stocks, bonds end brutal 1st half

What the dollar’s historic surge means for markets as stocks, bonds end brutal 1st half

2022 is shaping up as a historic year for markets, including the world’s reserve currency. While the S&P 500 is headed for its worst first half in more than five decades, the dollar appreciated during the first six months of 2022 by the largest margin in history, according to some measures. The Federal Reserve’s decision … Read more

Why the S&P 500 may be in for a 1966-style bear market, according to DWS Group

Why the S&P 500 may be in for a 1966-style bear market, according to DWS Group

The S&P 500 has found good support recently and, while in a bear market, the large-cap index may not fall much further this year, said David Bianco, chief investment officer of the Americas for fund manager DWS Group. “I think the most comparable bear market we’ve experienced right now is 1966,” Bianco said at a … Read more

Financial markets seen unprepared for risk that inflation resists Fed rate hikes in second half of 2022

Financial markets seen unprepared for risk that inflation resists Fed rate hikes in second half of 2022

Investors and traders attempting to navigate one of the most treacherous periods in financial markets in years are all but sure to face more volatility during the second half of this year. One major reason is that few seem to be prepared for the risk that US inflation, already at an almost 41-year high of … Read more