Fed’s Dovish Turn Fuels Rally, But Beware Of Rate Cut Risks

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com] The Fed’s dovish statement last week sparked a rally that pushed the S&P 500 close to a record high. Three rate cuts in 2024, cooling inflation, and lower Treasury yields boosted the market mood in this seasonally strong period for stocks. The Fed thinks it has tamed inflation, but it may be in for a rude …

How The Fed Surrendered To Inflation And Boosted The Stock Market

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com] The stock market ended higher today, with the 10-year Treasury yield plunging to 3.92%, its lowest level since August. Investors were cheered by a surprise increase in retail sales, which suggested that the economy would avoid a hard landing in 2024. The bond market seemed to give an assist, as traders priced in more rate cuts …

Fed Delivers Early Christmas Present To Markets, Signals Three Rate Cuts In 2024

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com] The Fed gave the markets a big gift by signaling that it will slash rates more than expected next year. The central bank kept the key interest rate unchanged for now, but projected three cuts in 2024, as inflation has cooled down from its recent highs. This was music to the ears of investors, who have …

Wall Street Rises Ahead Of Fed Decision, Shrugs Off Inflation Data

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com] Wall Street shrugged off another inflation report and pushed the major indexes higher, after a sluggish start. Traders are waiting for the Fed’s decision on monetary policy, which could affect the pace of the economic recovery. The consumer price index, which measures the cost of living, rose 3.1% from a year ago and 0.1% from October. …

Fed Rate Cut Hopes Lift S&P 500; Bitcoin Battered By Warren

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com] The S&P 500 ended higher on Monday, after a choppy session, as investors waited for the final Federal Reserve meeting of 2023. The big question is: when will the Fed start to lower interest rates? The Fed is likely to keep the fed funds rate unchanged in the 5.25%-5.5% range. But Chair Jerome Powell may also …