Stampede into US small caps as flows hit 2024 peak
The sharp rotation in the US stock market last week included a massive dash into small-cap stocks. Investors are betting that softer US inflation will pave the way for interest rate cuts by the Federa...
Market wrap: S&P 500 sees nearly 400 stocks rise but index still down
The S&P 500 had its worst session since the end of April, falling 0.9% as the Magnificent Seven proved a misnomer — at least for today. A soft US CPI inflation print catalyzed a violent rotation out o...
“Belated overreaction,” and why the American stock market has entered Bizarro World
Congratulations if you’ve been having a great year picking stock and industry winners. But, if you have, you might also be having a crappy day. The soft June CPI inflation print appears to be catalyzi...
Markets are recalibrating as rate cuts feel imminent
It’s a recalibration rally across Wall Street: Financial markets are behaving like inflation has fallen enough that the Federal Reserve will be able to cut interest rates and bolster the growth outloo...
US housing continues to struggle as home sales plummeted in May
High interest rates continue to keep the US housing market on life support. May numbers from the National Association of Realtors show its index of pending home sales — a forward looking indicator of ...
Inflation might be slowing, but where is it still hitting the hardest?
Inflation, but make it slower The latest Consumer Price Index (CPI), a weighted basket of various goods and services, was unchanged month-over-month in May and rose 3.3% on a yearly basis , down from ...
US macro data signal time to move towards lowering interest rates
For the past year, the US macro backdrop — the mix of growth, unemployment, and inflation data — has been sending mixed signals. During the second half of last year, economic growth was accelerating, ...
Fed held interest rates steady. Takeaways from today's meeting.
The Federal Reserve kept its policy rate unchanged at a range of 5.25-5.5% in its Wednesday decision, while acknowledging that recent inflation data is a step in the right direction. The central bank ...
Market wrap: cooling inflation propels US stocks to record highs
The S&P 500 and Nasdaq 100 booked fresh all-time highs, up 0.9% and 1.3%, respectively, after core CPI inflation came in well below analysts’ expectations in May. The – which was red on the year head...
When deciding interest rates, the Fed always thinks we live in uncertain times
With US monetary policymakers about to deliver an interest rate decision and updated economic forecasts, only one thing’s for certain: uncertainty. Each quarter, every Fed official submits their own s...
US stocks and bonds rally after soft CPI report
US equity futures and bonds are on a tear after the May consumer price inflation report showed core price pressures were much softer than expected. Core CPI was up 0.16% month-on-month, while economis...
Market Wrap: US stocks creep lower as treasury yields spike on strong job growth
The S&P 500 fell 0.1% to end the week after May’s US job report showed employment grew by much more than anticipated. 10-year Treasury yields rose nearly 15 basis points in the aftermath of the releas...
Treasury yields spike after US job growth crushes expectations in May
May jobs day in the US is a tale of two labor market reports. The establishment survey — which asks businesses about employment levels — was quite solid, showing job growth of 272,000 that exceeded ec...
US stocks rise; bonds surge on cooling labor market data
Another day, another small gain for US stocks as the S&P 500 closed up 0.2%, extending its winning streak to three. More defensive sectors like real estate and consumer staples led the way higher on T...
Q&A with Kyla Scanlon: "The way we thought about the economy is not how it is anymore"
Sherwood’s Jack Raines interviewed Kyla Scanlon to discuss the economy, national debt, social media as an information source, common misconceptions about the Fed, her new book, and more. Kyla is a wri...
Frantic melt-up propels US stocks sharply higher to end May
The S&P 500 enjoyed a melt-up in the final hour of trading to avoid its first three-day losing streak in over a month and end the session up 0.8%. April’s PCE inflation report showed monthly core infl...
Rising bond yields sink US stocks
The S&P 500 fell 0.7% on Wednesday as rising government bond yields weighed on the stock market. 10-year Treasury yields have risen 15 basis points over the past two sessions, though market pricing fo...
The S&P 500 topped 5300, a record high for US stocks
The S&P 500 topped 5,300 to set new intraday and closing records on Wednesday as slowing inflation and spending increased the likelihood of interest rate cuts from the Federal Reserve. Federal funds f...
US stocks hit all-time highs as core CPI inflation rose 0.3%
The S&P 500 opened at an all-time high as core CPI inflation rose 0.3% month-on-month in April, allaying fears that the sharp re-acceleration in price pressures seen during the first quarter of the ye...
Stock manias are not a zero interest rate phenomenon
“We hope the Federal Reserve is taking note of the gambling that’s being done with the zero-interest money it’s pumping out,” wrote the Washington Post’s Editorial Board in late January 2021, chiding ...