Outlook

On the good news front, CPI was indeed modestly market friendly. Stocks took the lower yields as a good sign

Markets are rallying with this morning’s weaker-than-expected economic data dampening concerns of a prolonged journey across the monetary policy bridge.

Stocks notched a solid gain last week as rate-cut expectations paced the rally as the Q1 earnings season wound down.

The innovation economy continues to stymy the Fed’s attempt to slow inflation

While lower costs of capital helped stocks last year and continue to do so, recent earnings calls point to the potential for lighter yields to signal trouble. As equities trade near record highs amidst rates that have drifted lower, the consideration of a worn-out consumer is pivotal.

The bottom line is that “higher for longer” remains a dominant theme for the U.S. bond market.

Stocks notched a solid gain last week, rallying behind upbeat earnings, a dovish Fed, and mixed economic data.

Push it back, push it back, way back

Nvidia, Broadcom, Amazon, and Intel

Stocks retreat

Despite sticky inflation, the Fed reiterated that rate cuts were still on the table for this year, while several leading money center banks forecasted lower growth for the remainder of 2024 due partly to inflation and higher-than-expected rates.

The current state of the housing market remains a huge problem for 2%, as home values remain at all-time highs due to an undersupplied market and many homeowners who are locked in at 2% to 4% mortgages, constraining inventory and leading to sticky rents.