Fed rate hikes: Cause for pause?
Fed watchers see potential for a pause in rate increases, but recent reports show the economy still runs hot.
Get updates on recent capital market data and trends, including possible expectations for future outcomes.
Fed watchers see potential for a pause in rate increases, but recent reports show the economy still runs hot.
Returns for tech stocks have raised market indexes, but something else is happening beneath the surface.
Bulls and bears have wildly different perspectives in the current environment. Bulls point to the better-than-expected consumer data, settling of the disruption in the banking sector, and the contrarian benefit of near-universal pessimism. Sentiment indicators continue to reflect substantial bearishness among retail and institutional investors, economists, and Wall Street strategists.
Stocks have traded in a narrow range as of late, indicating a split between market bulls and bears and between the market and economy.
In May, the Federal Reserve announced its tenth consecutive interest rate increase, but with 253,000 new jobs added in April, the Fed may have to act again when it meets in June.
Fund managers continue to exhibit extreme caution, with banking sector disruption joining inflation, higher rates, and macro uncertainty on the list of worries, driving equity positioning to the lowest level relative to bonds since 2009.