Gold steady after snapping 4-week losing streak
Gold futures were little changed Monday, holding steady after snapping a run of four straight weekly declines, as investors awaited testimony this week by Federal Reserve Chair Jerome Powell.Price action Gold for April delivery GC00, +0.16% GCJ23, +0.16% rose $2.60, or 0.1%, to $1,857.20 an ounce. May silver SIK23, -0.01% was up 3.2 cents, or […]
Secret to 2023 stock rally? Central banks have provided $1 trillion liquidity boost.
Gains for global equities have left many on Wall Street perplexed as stocks — especially high-risk growth names with little or no profits — have rebounded from last year’s punishing selloff, resisting both the pull of more attractive bond yields, and the threat of higher interest rates. But some Wall Street analysts say they’ve found […]
Fed’s Goolsbee says this is a ‘strange and unprecedented moment’ for U.S. economy
The U.S. economy is in a strange and unprecedented moment, according to Austan Goolsbee, the new president of the Chicago Federal Reserve Bank. In his first speech since taking office last month, Goolsbee said he had no doubt that the economy will face “bumps in the road.” He gave the speech at an event hosted […]
Risk of ‘wrathful Old Testament–style’ reaction from central banks is rising, JPMorgan says
The “gentle and forgiving path” taken by developed-market central banks to rein in inflation over the past year is likely to prove unsuccessful and trigger the need for more forceful, biblical-type action.That’s the view of economists Bruce Kasman, Joseph Lupton and Michael Hanson of JPMorgan Chase & Co. JPM, +1.10%, who described the response of […]
Strategist who loves challenging consensus sticks by call for 8% fed-funds rate
Dominique Dwor-Frecaut, a former associate with the New York Fed and outlier from the rest of the financial-market pack, is standing by a bold call she made a year ago: She says the Federal Reserve needs to hike its benchmark interest rate to 8%, versus the current level of 4.5%-4.75%, to stabilize inflation and could […]
Opinion: The stock market’s rally was a head fake and the smart money now is with the bears
The stock market, as measured by the S&P 500 Index SPX, +0.53%, has fallen below the 4100 level. That is significant because there previously was triple resistance at that level, and when SPX broke out above that level in late January, it seemed as if the next leg of the “new” bull market was underway. […]
Opinion: No ‘soft landing’ is in the cards from Fed rate hikes. Look for recession and a buying opportunity once stock prices decline.
Is the bear market of 2022 over? Are we already in the early innings of the next great bull market? The S&P 500 SPX, -0.16% finished 2022 with a 19% decline (its biggest pullback since 2008). Meanwhile, the Dow Jones Industrial Average DJIA, -0.26% lost 8.8% and the Nasdaq COMP, +0.13% tumbled 33%. It’s been […]
Why January’s CPI report could deal a massive blow to the stock market
The stock market’s start-of-year rally is poised to fizzle if a highly-anticipated U.S. inflation report on Tuesday dashes hopes for a quicker retreat in the cost of living in America, warned market analysts. The January CPI reading from the Bureau of Labor Statistics, which tracks changes in the prices paid by consumers for goods and […]
Deutsche Bank says there’s a 90% chance of recession. But, without one, S&P 500 can get to 5,000.
One of Wall Street’s most pessimistic banks is conceding that the economic outlook has improved. But Deutsche Bank, in a new update of its house view, still says there’s a 90% chance of a U.S. recession this year. It says that while there’s evidence inflation has peaked, it’s still well above central-bank targets and likely […]
U.S. consumer credit grows at slowest pace in two years in sign of economic worries
The numbers: The amount of credit consumers used in December rose by a scant 2.9% — the smallest uptick in more than two years — as Americans tightened their belts in response to a slowing economy. Consumer credit rose by $11.6 billion in the final month of 2022, Federal Reserve data showed. Economists had expected a […]