US stock rally fizzles as confidence tumbles, inflation fears linger
The rose 0.2% to close out its third consecutive week of gains, but ended shy of its March 28 record high. It’s the first time the benchmark US stock index has booked back-to-back-to-back weekly adva...
Stock market nears new highs for the year, but why?
So here we are again. Since stumbling last month, when a string of unfriendly numbers on inflation arrived undercutting hopes that the Fed could soon deliver sweet, sweet rate cuts , the equity market...
European markets hit records as traders expect rate cuts
Stock markets in the UK and Germany have suddenly sprung to life. The reason? Good economic news? A surge of corporate profitability? Of course not! Though profit expectations for both countries have ...
Friday's jobs report shows a cooldown. Investors love that.
The US labor market showed signs of cooling in April, and investors are rejoicing. Job growth of 175,000 came in well below the consensus estimate of 240,000. The unemployment rate unexpectedly ticked...
Japan's yen is lassoed to the dollar, for better or for worse
What happens in the US economy doesn’t stay there: the Fed’s choice to keep interest rates unchanged could increase pressure pushing down the Japanese yen. On Wednesday, Jerome Powell held interest ra...
Why the Fed thinks it can outlast inflation
Mike Tyson famously said, “Everyone has a plan until they get punched in the face.” Surprisingly hot US inflation so far this year has been — at best — a gut punch to the Federal Reserve’s plan to del...
Federal Reserve keeps interest rates steady
The Federal Reserve kept its target monetary policy rate unchanged, and noted “a lack of further progress” toward getting inflation down to its 2% target. Stocks and bonds were relatively unchanged on...
Stock market gains for 2024 cut by more than half
All of the sudden, the stock market seems to be running out of steam. There’s no big mystery here. War in the Mideast has pushed up oil prices , which will help keep inflation elevated. And annoyingly...
What interest rates mean for the stock market
It’s the first commandment of the stock market: don’t fight the Fed. And for good reason. The Fed plays a key role in setting interest rates. And interest rates are a key ingredient — at times the key...
Stock rally starts sputtering
At the risk of stating the obvious, the market has really started struggling. Last week’s hot inflation report, and the spike in interest rates it generated, seemed to get the sell-off rolling. Milita...
Banks thrived with rising rates, but can't win with stable ones
Last Friday, JPMorgan’s stock fell more than 6% after the bank failed to raise guidance on its net interest income (NII), or the difference between what the bank makes from loans, mortgages, and other...
Where is inflation still rising the most?
The endless escalator Inflation is that one unwanted guest that just won’t leave: headline inflation (CPI) in March rose to 3.5% annually, up from 3.2% the month before. Investors didn’t love the new...
The Fed's inflation problem
In a keynote address at Stanford last week, Federal Reserve Chair Jerome Powell said , “The recent data do not... materially change the overall picture, which continues to be one of solid growth, a st...
Credit card delinquency is at the highest rate on record
A record 3.5% of US credit card balances were more than 30 days past due at the end of last year, according to data released yesterday by the Federal Reserve Bank of Philadelphia, whose data goes back...
Mortgage rates jump after CPI
Slightly hot March inflation numbers continue to ricochet around the financial markets. Yields on U.S. Treasury bonds — very sensitive to the outlook for growth and price increases — surged on the rep...
Money funds are raking in record amounts of cash
The stock market might be desperate for rate cuts, but for those with cash to stash away, high rates are just fine. High short-term interest rates — closely tied to the short-term rates the Fed uses t...
Small businesses are pessimistic and feeling the heat of inflation
US small-business confidence hit its lowest level since December 2012, with 25% of owners citing inflation as the single most important problem in operating their business. Additionally, a net negativ...
June fed rate cut odds now a coin flip
All this good economic news may delay the Fed rate cuts the stock market has been counting on. The most recent Q4 GDP report was good . The March jobs report was great . And the manufacturing sector ...
Market falls on strong economic news
An upswing in factory activity is giving stocks some agita. Monday’s slump started just as we got the strongest reading on industrial activity since 2022. What gives? Interest rates, which surged on...