Stocks' slump shows investors have stopped fighting the Fed, BIS says

fueling traders' fears that the Fed will have to raise interest rates above 5% and then keep them there for the rest of 2023 to curb soaring prices.

When borrowing costs rise, stocks tend to fall because the decline in their future cash flows chips away at their valuations. But the recent stock slump isn't necessarily bad news for investors, according to Borio – who said that stocks' February struggles suggest investors are finally aligning their expectations with the hawkish Fed, reducing the risk of a surprise rate hike triggering a stock market crash.

"The sanguine attitude of investors contrasted sharply with the cautious tone of policymakers," he said."Central banks gave no indication that monetary easing was on the horizon." "In early February, renewed evidence of strong labor market conditions and solid growth nudged investors to bring their views more in line with central banks," he added.

Not until SPY hits 3k, otherwise many are still fighting JerrBear

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Stock market today: Dow suffers monthly loss as Fed fears wound stocks in February By Investing.comStock market today: Dow suffers monthly loss as Fed fears wound stocks in February 6% is crazy
Fonte: Investingcom - 🏆 450. / 53 Consulte Mais informação »

Investor says tech has yet to bottom — and reveals the mega-cap stocks to avoidBear market rally or a new bull market? Market pros are undecided about this year's tech rally, but tech investor Mark Hawtin thinks the worst is yet to come. Tech bottomed in October last year. Hedge funds that got their butts handed to them in that historic short squeeze are just trying to scare investors. They’re in denial that the market bottomed a long time ago. $JEPQ is all they need to invest in!
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »