Last Fed hike tends to aid stocks, but some have doubts this time

Traders work on the floor of the NYSE in New YorkNEW YORK - The end of the Federal Reserve's rate hiking cycle has generally been a good time to own U.S. stocks, but an uncertain economic outlook and stretched valuations could dampen upside this time around.

Investors with a more bearish view, however, say it is only a matter of time before higher rates tighten economic conditions and bring a downturn. The S&P 500 is already up over 16% this year, aided in part by a U.S. economy that has stayed resilient in the face of higher interest rates. Though most investors believe a recession is unlikely in 2023, a slowdown next year remains a possibility for some market participants. One worrying recession signal has been the inverted Treasury yield curve, a market phenomenon that has preceded past downturns.

More of the kind of generally benign inflation data that has come over the last few months, however, could mean the Fed's quarter-point increase in July was the last in a cycle that shook asset prices last year.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Tech leads stock slump as Wall Street eyes Fed's next move: Stock market news todayUS stocks were mostly muted Friday as the major indexes looked to build on a Thursday rally.
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Stocks slide to end volatile week lower, with Fed in focus: Stock market news todayUS stocks were mostly muted Friday as the major indexes looked to build on a Thursday rally.
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Why one strategist thinks stock market sentiment may have shiftedThe Federal Reserve will hold its September meeting next week. traders and investors are betting the Fed will hold rates steady despite inflation being above their % target. Crossmark Global Investments Chief Market Strategist Victoria Fernandez tells Yahoo Finance Live that it looks like there has been a 'shift' in how the market and investors are interpreting economic data. For the past few weeks, 'good news' on the economy indicated that the Fed would have to keep hiking rates, explains Fernandez, but now good is “actually good news,” as the market and investors are starting to think Fed may be close to pausing its rate hike cycle. 
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »