Could Overly Easy Credit and a Soaring Stock Market Threaten the Fed’s Fight Against Inflation? As the Federal Reserve kicks off its two-day meeting, stocks continue to rally, with the S&P 500 ending January with a gain of 6.2%. The tech sector performed even better, with a 9.2% increase in the same period. Meanwhile, interest … Read more
The corporate earnings season is in full swing, and investors are feeling the heat as concerns grow about the struggles of some of the largest U.S. companies amidst rising rates and recession fears. On Wednesday, the Dow Jones Industrial Average fell by 190 points, or 0.56%, the Nasdaq Composite dropped 1%, and the S&P 500 … Read more
Stocks fell on Tuesday as investors struggled to maintain momentum during a busy stretch of corporate earnings. The Dow Jones Industrial Average fell by 166 points or 0.5%, the S&P 500 slipped by 0.6%, and the Nasdaq Composite dropped by 0.4%. The market moves on Tuesday came after a solid start to the week, with … Read more
On Tuesday, the Dow Jones Industrial Average struggled to maintain its early 2023 momentum as investors weighed the latest earnings results. The blue-chip index, which is a stock market index that tracks 30 of the largest and most widely traded publicly listed companies in the United States, lost 391.76 points, or 1.14%, to close at … Read more
Critical information for the U.S. trading day Another turnaround Tuesday may be in the cards after a litany of concerns including stagflation dragged the S&P 500 SPX below 4,000 for the first time since 2021. As investors try to regroup from the worst three-day stock stretch in two years, one more hard day of selling for the S&P … Read more
The stock market is now in very serious trouble. The bond market is NOT calming down. Last week the yield on the all-important 10-Year U.S. Treasury (the most important bond in the world) spiked to new highs for this bull run. Why does this matter? Because the yield on this bond represents the “risk-free” rate … Read more
Quick takes: Use this draw-down as an opportunity. The markets collapsed Thursday from leveraged ETFs (SQQQ & TQQQ) selling $15bn and option dealers selling huge amounts of gamma into the market. The Fed will NOT let pensions explode and create a massive retirement crisis in order to fight 8.5% inflation. Inflation is already decelerating (used … Read more
Morgan Stanley’s bearish chief U.S. equity strategist Mike Wilson has some bad news and some good news for investors. On the heels of the worst April for stocks since 1970, Wilson and a team of strategists laid out what’s ahead as we enter “the next phase of the bear market,” predicting the S&P 500 index SPX, +0.45% is … Read more
Critical information for the U.S. trading day Investors are trying to regroup following the worst month since the pandemic, and Friday’s session that ended with the Dow tanking nearly 1,000 points and the S&p 500 pushing back into correction territory. All eyes are on this week’s monumental Fed meeting, where a 50 basis-point rate hike … Read more
The go-to bullish indicators highlighted by pundits these days are the high levels of sidelined mutual fund cash and the AAII investor sentiment survey hitting its highest bearish reading since 2009: Traditionally, these signals suggest that most of the carnage is priced into markets, indicating that it might be time to buy. However, these data … Read more
