Here's why investors are far too optimistic that the Fed is going to cut interest rates soon
in last week's jobs report was well above expectations of 180,000 and"too hot to justify a further dovish shift in Fed policy," Haefele said.Consumer Price Index in March
cooled to 5% but was still above the Fed's 2% target. On Wednesday, the April CPI report is expected to hold steady at 5%. Despite all this,"valuations in the equity market are pricing in too rosy an outcome for the economy," the investment strategist said. has been trading at 18.8 times forward earnings over the coming 12 months, a 16% premium to the 10-year average. 10-year Treasury yield"At present, we expect S&P 500 earnings to contract 5% in 2023," he said, and the 10-year Treasury yield was up at 3.5% on Monday.
"As a result, we believe US equities are pricing a high probability of a near-perfect outcome for the US economy. Yet tighter financial conditions, declining corporate earnings, and relatively high valuations all present risks."
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Stock futures mixed, with regional lenders continuing to rise as Fed loan data loomsA cautious start is ahead for Wall Street as investors watch for economic data and more earnings, and regional lenders move higher again.
Lire la suite »
Stock market outlook: Here's what investors want from Fed, says Jeremy SiegelHere's exactly what the stock market wants from the Fed - and why it might not get it anytime soon, according to Wharton professor Jeremy Siegel
Lire la suite »
Stock market outlook: Fed rate cut would be disaster for stocksInvestors hoping for a rate cut from the Fed need to wake up to the fact that such a move would be bearish for stocks, JPMorgan's Marko Kolanovic says
Lire la suite »
Scotts Miracle-Gro stock rises as JPMorgan upgrades stock to overweight from neutralScotts Miracle-Gro Co.’s stock rose 3.7% in premarket trades on Monday after JPMorgan Chase upgraded the stock to overweight from neutral, partly on lower...
Lire la suite »
AMC stock falls, APEs rise on stock conversion agreementAMC has been looking to resolve its proposed conversion of APE units into common stock.
Lire la suite »
Miss Manners: Apparently my life is a reality showMy husband and his son spill my business to everyone, and I’m fed up.
Lire la suite »