Tag Archives: Fed

Bond yields ripped higher after new employment data showed the U.S. economy adding a breakneck 528,000 jobs in the month of July. Emily Roland, co-chief investment strategist at John Hancock Investment Management, told Yahoo Finance the strong July jobs report shows that the economy is “not there yet” when it comes to recession. Michael Pearce, senior U.S. economist at Capital Economics, was even firmer in an email following Friday’s data: “The unexpected acceleration in non-farm payroll… Source link

The Bank of England announced its biggest rate hike since 1995 on Thursday, following the lead of the Federal Reserve in the U.S., which has been raising rates to respond to skyrocketing inflation. But some Fed watchers believe the U.S. central bank acted too slowly. The Federal Reserve became ensnared in a “cognitive trap” that made the central bank believe inflation was fleeting, Mohamed El-Erian, Allianz SE chief economic adviser and ex-PIMCO CEO, said in a recent episode of “Influencers… Source link

Stocks surged after last week’s Federal Reserve meeting as some experts argued that the central bank effectively “pivoted” its tone from being uber hawkish about monetary policy to being a bit dovish. If this interpretation is true, then this could be very bullish as there may be a more clear end in sight for the Fed-sponsored market beatings. The unfortunate irony, however, is that a market rally reflects easing financial conditions during a time when the Fed is actively trying to… Source link

(Bloomberg) — Federal Reserve Chair Jerome Powell is raising interest rates at the steepest pace in a generation and he said Wednesday that another big increase is possible. Yet investors sent stocks surging on his comments that the hikes will eventually slow. Most Read from Bloomberg Some Fed watchers say markets read Powell’s press conference too narrowly. Economists pointed out that the Fed’s top focus remains curbing inflation, even if it comes at a cost to employment, the other side… Source link

U.S. stocks surged Wednesday as investors mulled a major decision from Federal Reserve policymakers to raise interest rates by 0.75% and remarks from Chair Jerome Powell hinting the central bank may slow the pace of its rate-hiking cycle. Better-than-expected earnings from tech giants also helped lift sentiment. The S&P 500 jumped 2.6%, while the Dow Jones Industrial Average gained 430 points, or roughly 1.4%. The tech-heavy Nasdaq Composite soared 4.1%. The Fed on Wednesday issued another 75… Source link

A man wearing a protective face mask, amid the coronavirus disease (COVID-19) pandemic, walks past a screen showing Shanghai Composite index, Nikkei index and Dow Jones Industrial Average outside a brokerage in Tokyo, Japan, February 14, 2022. REUTERS/Kim Kyung-Hoon Register now for FREE unlimited access to Reuters.com Register SINGAPORE, July 27 (Reuters) – Better-than-expected results at Microsoft and Google helped soothe a nervous mood in stock markets on Wednesday, while a cut in Russian… Source link

Following inflation data showing worse-than-expected price increases in June, bond markets are now flashing signs of deeper investor concerns about recession. On Wednesday, the U.S. 10-year note yield slipped as much as 0.21% lower than the yield on the 2-year, the largest negative spread between the two securities since 2000. A yield curve inversion, in which short-dated bonds yield more than longer-dated ones, shows a reversal in typical risk attitudes, as investors usually expect more… Source link

“The Federal Reserve isn’t trying to kill the economy, it’s just trying to end free money,” said veteran strategist John Stoltzfus. “Free money is bad in our view in that it encourages all kinds of speculation, it inflates asset classes.. and it creates instability in the economy,” added Oppenheimer’s chief asset management strategist. Stolttzfus’ comments come on the heels of last month’s jobs data highlighting continued tight labor market conditions. Market watchers see the… Source link

‘I’m betting the second half turns out better’: Jim Cramer believes that the market will soon bounce. Here’s what he likes to ‘protect you’ while the Fed keeps tightening The S&P 500 has plunged nearly 21% in the first six months of 2022, marking its worst first-half performance since 1970. But not everyone is bearish. CNBC’s Jim Cramer, for instance, still sees opportunity in the months ahead — particularly in the Dow Jones Industrial Average. “These tend to be boring, mature… Source link

U.S. stocks pushed higher Wednesday afternoon to close out a choppy day in the green, though the risk of a recession remained top of mind for many investors. The S&P 500 rose for a third straight session, closing higher by 0.4% to end at 3,845.08. The Dow Jones Industrial Average gained 70 points, or 0.2%, to end at 31,037.68, and the Nasdaq Composite gained 0.4% to reach 11,361.85. The moves came after minutes from the Federal Reserve reaffirmed the central bank remained focused on tightening… Source link