Forbes on Nostr: Despite Fed Hawkishness Recent Inflation Data Give Markets Hope ========== The ...
Despite Fed Hawkishness Recent Inflation Data Give Markets Hope
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The financial markets were mixed this week with tech sectors performing well while traditional sectors lagged. The S&P 500 and Nasdaq closed higher, but the Dow Jones Industrials were down. The tech-heavy Nasdaq is hot due to the Artificial Intelligence craze. The recent lower-than-expected readings in Consumer and Producer Prices moved rate cut expectations for 2024 to two, with the possibility of the first cut as early as September. Interest rates declined in the later part of the week. The inflation news was positive, with the CPI and PPI both showing lower-than-expected numbers. The Fed's dot-plot indicated one rate cut in 2024, but markets are now pricing in two cuts in 2024 and a third cut in January 2025. The labor market has weakened, with layoffs and initial unemployment claims on the rise. The U3 Unemployment Rate has risen by 0.6 percentage points, and historically, the US economy has never avoided a recession when the U3 rate has risen by 0.5 percentage points or more.
#FinancialMarkets #Inflation #Fed #RateCuts #LaborMarket
https://www.forbes.com/sites/greatspeculations/2024/06/15/despite-fed-hawkishness-recent-inflation-data-give-markets-hope/
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The financial markets were mixed this week with tech sectors performing well while traditional sectors lagged. The S&P 500 and Nasdaq closed higher, but the Dow Jones Industrials were down. The tech-heavy Nasdaq is hot due to the Artificial Intelligence craze. The recent lower-than-expected readings in Consumer and Producer Prices moved rate cut expectations for 2024 to two, with the possibility of the first cut as early as September. Interest rates declined in the later part of the week. The inflation news was positive, with the CPI and PPI both showing lower-than-expected numbers. The Fed's dot-plot indicated one rate cut in 2024, but markets are now pricing in two cuts in 2024 and a third cut in January 2025. The labor market has weakened, with layoffs and initial unemployment claims on the rise. The U3 Unemployment Rate has risen by 0.6 percentage points, and historically, the US economy has never avoided a recession when the U3 rate has risen by 0.5 percentage points or more.
#FinancialMarkets #Inflation #Fed #RateCuts #LaborMarket
https://www.forbes.com/sites/greatspeculations/2024/06/15/despite-fed-hawkishness-recent-inflation-data-give-markets-hope/