Stock market in for ‘rough ride’ after Brainard’s ‘tough talk’ on Fed balance sheet

Stock market in for 'rough ride' after Brainard's 'tough talk' on Fed balance sheet

Tough talk Tuesday on the Federal Reserve’s balance sheet from a key policy maker could signal rough sledding ahead for equity investors, a Wall Street economist warns. “Fedspeak has become increasingly more hawkish with a noted dove hinting that balance-sheet reduction could begin as soon as next month,” said Joe LaVorgna, chief economist for the … Read more

Bear market rally setting stage for correction: Morgan Stanley warns

Bear market rally setting stage for correction: Morgan Stanley warns

A major Wall Street firm is on correction watch. Despite the latest market bounce, Morgan Stanley’s Mike Wilson is bracing for an S&P 500 decline of at least 13% between now and September. Wilson cited technical headwinds on CNBC’s “Fast Money” on Monday. “It does have all the hallmarks of what I would call a … Read more

US stock end higher Friday, S&P 500 rises for third straight week, after March jobs report reinforces Fed rate-hike expectations

US stock end higher Friday, S&P 500 rises for third straight week, after March jobs report reinforces Fed rate-hike expectations

All three major US stock benchmarks closed higher Friday, after a March jobs report reinforced a picture of a healthy economy but also underlined expectations for the Federal Reserve to be more aggressive in hiking interest rates in an effort to rein in persistently hot inflation. How did stock indexes perform? The Dow Jones Industrial … Read more

US stock end higher Friday, S&P 500 rises for third straight week, after March jobs report reinforces Fed rate-hike expectations

US stock end higher Friday, S&P 500 rises for third straight week, after March jobs report reinforces Fed rate-hike expectations

All three major US stock benchmarks closed higher Friday, after a March jobs report reinforced a picture of a healthy economy but also underlined expectations for the Federal Reserve to be more aggressive in hiking interest rates in an effort to rein in persistently hot inflation. How did stock indexes perform? The Dow Jones Industrial … Read more

‘The dam finally broke’: 10-year Treasury yields spike to breach top of downward trend channel seen since mid-1980s, says Deutsche Bank

'The dam finally broke': 10-year Treasury yields spike to breach top of downward trend channel seen since mid-1980s, says Deutsche Bank

Yields on the 10-year Treasury note have spiked through the top line of a downward trend channel tracing back to the mid-1980s, with surging inflation and the Federal Reserve’s reaction to it sparking questions over whether the long-term trend will imminently end, according to a research note from Deutsche Bank. “Clearly such a channel can’t … Read more

Stocks Waver as Bond Yields Tick Down

Stocks Waver as Bond Yields Tick Down

US stocks wavered and bond yields remained near their highest level in three years with investors preparing for a campaign of interest-rate increases from the Federal Reserve. The S&P 500 was up about 0.1% in early trading Monday. Last week, US stocks rebounded for a second consecutive week. The tech-focused Nasdaq Composite rose 0.5%, while … Read more

Stocks Cap Largest Two-Week Gain Since Late 2020

Stocks Cap Largest Two-Week Gain Since Late 2020

US stocks rebounded for a second consecutive week as investors gained confidence that the economy can withstand the escalating war in Ukraine and the Federal Reserve’s plans to lift interest rates to control inflation. The S&P 500 climbed 1.8% for the week, extending its gains over the past two weeks to 8.1%, the strongest run … Read more

Recession risks are ‘uncomfortably high and moving higher,’ Mark Zandi says

Recession risks are 'uncomfortably high and moving higher,' Mark Zandi says

new York CNN Business — The war in Ukraine. Red-hot inflation. And rapid interest rate hikes. The economic recovery that began two years ago faces credible threats that could lead to its premature demise. The US economy has at least a one-in-three chance of sinking into a recession over the next 12 months, Moody’s Analytics … Read more

Why the stock market isn’t ‘getting smoked’ even as Federal Reserve signals it’s ready to supersize interest rate hikes

Why the stock market isn't 'getting smoked' even as Federal Reserve signals it's ready to supersize interest rate hikes

A brief wobble aside, the US stock market is taking Federal Reserve Chairman Jerome Powell’s decision to fully unleash the inflation-fighting side of his monetary policy persona in stride. That may be a surprise to some investors as Treasury yields soar and money-market participants price in an aggressive round of benchmark interest rate increases after … Read more

Bond Yields Jump, Stock Futures Rise After Powell Says Fed Is Ready to Be More Aggressive

Bond Yields Jump, Stock Futures Rise After Powell Says Fed Is Ready to Be More Aggressive

US government bond yields surged and stock futures rose, as investors digested Federal Reserve Chairman Jerome Powell’s more aggressive tone on reining in inflation. Futures for the S&P 500 and Dow Jones Industrial Average advanced 0.3% and 0.5%, respectively, on Tuesday. Contracts for the tech-focused Nasdaq-100 rose 0.2%. Major US stock indexes ended lower Monday … Read more