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MarketBeat Minute(2022-04-27)
Equities resumed their downward trend on Tuesday reversing Monday's rebound on renewed fear of the FOMC. The tech-heavy NASDAQ Composite led the move with a loss close to 4% at the low of the session. The NASDAQ Composite is a growth-oriented index and those stocks, particularly those that rely on debt to fuel their growth, are sensitive to interest rates and the FOMC.
Later this week, the selling may pick up momentum after the PCE Price Index is released. The index is expected to show another strong gain in YOY inflation and will start the 2nd year of above-target consumer inflation gains. Regardless of the PCE data, the FOMC is on track to raise rates when it meets in April. Weaker than expected data may reduce the urgency and pace at which they raise rates but will not remove the need for higher rates. The takeaway, the cost of business is going to go up when the Fed raises interest rates and that may send the economy into a recession and the market into a tailspin.
Later this week, the selling may pick up momentum after the PCE Price Index is released. The index is expected to show another strong gain in YOY inflation and will start the 2nd year of above-target consumer inflation gains. Regardless of the PCE data, the FOMC is on track to raise rates when it meets in April. Weaker than expected data may reduce the urgency and pace at which they raise rates but will not remove the need for higher rates. The takeaway, the cost of business is going to go up when the Fed raises interest rates and that may send the economy into a recession and the market into a tailspin.
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By MarketBeat MinuteEquities resumed their downward trend on Tuesday reversing Monday's rebound on renewed fear of the FOMC. The tech-heavy NASDAQ Composite led the move with a loss close to 4% at the low of the session. The NASDAQ Composite is a growth-oriented index and those stocks, particularly those that rely on debt to fuel their growth, are sensitive to interest rates and the FOMC.
Later this week, the selling may pick up momentum after the PCE Price Index is released. The index is expected to show another strong gain in YOY inflation and will start the 2nd year of above-target consumer inflation gains. Regardless of the PCE data, the FOMC is on track to raise rates when it meets in April. Weaker than expected data may reduce the urgency and pace at which they raise rates but will not remove the need for higher rates. The takeaway, the cost of business is going to go up when the Fed raises interest rates and that may send the economy into a recession and the market into a tailspin.
Later this week, the selling may pick up momentum after the PCE Price Index is released. The index is expected to show another strong gain in YOY inflation and will start the 2nd year of above-target consumer inflation gains. Regardless of the PCE data, the FOMC is on track to raise rates when it meets in April. Weaker than expected data may reduce the urgency and pace at which they raise rates but will not remove the need for higher rates. The takeaway, the cost of business is going to go up when the Fed raises interest rates and that may send the economy into a recession and the market into a tailspin.