The stock market slipped in the wake of the latest rate hike decision by the Federal Open Market Committee (FOMC), despite solid earnings from one mega-cap tech firm and a strong employment report.
Outlook
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Tighter credit conditions, recent banking turmoil, and higher mortgage rates gave a well-needed break to the acceleration of Fed rate hikes. Instead, they gave a false signal to the markets as the Fed was going to slow its pace.
The jobs report's strong wage growth and robust hiring data have led to a hawkish tone from investors, with bond yields climbing and equities advancing.
Following the restructuring of First Republic Bank, investors are looking ahead to an eventful week featuring a pivotal Federal Reserve meeting, earnings from large-cap companies including Apple, and market-moving economic data not limited to Payrolls and the Job Openings and Labor Turnover report.
The Fed's recent actions have led to a reevaluation of what it means to 'fight the Fed,' and it's crucial for investors to understand the difference between a trading opportunity and an investable rally.
Stocks rallied this week as investors shifted their attention to the Federal Reserve's upcoming May meeting, with strong earnings from several mega-cap technology companies offsetting renewed regional banking jitters and weak economic data.
The Global X Research survey surveyed 1,079 individuals in the United States, revealing key insights on the housing sector and proptech adoption. Notably, nearly 90% of respondents believe that average U.S. home prices increased at least 10% between 2019-2022.
The US consumer seems more than willing to pay more for their favorite brands, especially if they sell, um, comfort foods. Consider some of the winners that we have seen over recent sessions.
After last week's slew of second-tier data, it seemed as if the Treasury market had made up its mind-the economy is finally turning over and headed toward a recession sooner rather than later.
Investors are still waiting for signs of that recession, with recent economic data showing increasing evidence of slowing activity and tighter lending conditions.
The latest New Residential Construction report shows further weakness in the sector, with permits and groundbreaking declining sharply for multifamily projects.
The Fed's recent actions have led to a reevaluation of what it means to 'fight the Fed,' and it's crucial for investors to understand the difference between a trading opportunity and an investable rally.