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 […]
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 […]
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 […]
U.S. could be heading into period of ‘transitory disinflation,’ traders and strategists say
Hopes for a further decline in U.S. inflation this year are giving way to a risk seen in some corners of the financial market that any improvement in price gains will turn out to be fleeting.Strategists at JPMorgan Chase & Co. JPM, +1.22% and BofA Securities, along with Peter Schiff of Euro Pacific Asset Management, […]
Why the 2023 stock market rally may depend on further U.S. dollar weakness
The U.S. dollar may be losing its appeal as one of the few reliable safe-haven assets in times of economic and geopolitical uncertainty after an 18 month rally, but a further fall by the currency could fuel a 2023 stock-market rally, market analysts said.The ICE U.S. Dollar Index DXY, +1.22% fell to a nine-month low […]
The stock-market rally survived a confusing week. Here’s what comes next.
Despite a Friday stumble, stocks ended a turbulent week with another round of solid gains, keeping 2023’s young but robust stock-market rally very much alive.But a cloud of confusion also sets over the market, and it will eventually need to be resolved, strategists said. Stocks rose early in the week as traders continued to bet […]
A pre-jobs data bet may have have netted trader $10 million profit, report says
A big fed-funds futures bet placed just before the release of what turned out to be a blowout U.S. January jobs report may have netted a trader a profit north of $10 million, Bloomberg reported Friday. The trader sold the January 2024 fed-funds futures contract FFF24, -0.26%, the report said, with the trade completed through […]
State of the Union: 5 key challenges for Biden as he delivers his speech
President Joe Biden will face no small task on Tuesday night, when he delivers his State of the Union speech after a little more than two years in office.Biden looks poised to tackle the debt-limit standoff, recession worries and acts of violence at home and abroad in his remarks. At the same time, American presidents […]
The Fed and the stock market are set for a showdown this week. What’s at stake.
Let’s get ready to rumble.The Federal Reserve and investors appear to be locked in what one veteran market watcher has described as an epic game of “chicken.” What Fed Chair Jerome Powell says Wednesday could determine the winner. Here’s the conflict. Fed policy makers have steadily insisted that the fed-funds rate, now at 4.25% to […]