U.S. stock market’s gains hinge on timing of Fed’s pause or skip

  • 📰 financialpost
  • ⏱ Reading Time:
  • 55 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 85%

Business News News

Business Business Latest News,Business Business Headlines

History shows prospects for the bull market to keep running improve if Fed opts for a longer pause before its next rate increase. Read on.

This time, however, the halt after 10 straight hikes comes with a big caveat: Policymakers expect rates will rise further. That would suggest more of a “skip” than a “pause” — a very different scenario. But don’t tell that to investors who last week pushed the S&P 500 to a fifth straight week of gains, its longest winning streak since 2021.

From June 12’s close through trading June 16, the S&P 500 jumped 0.9 per cent, the best showing since February from a Fed decision day to the weekend, according to data compiled by Bloomberg. That pushed the index’s rally since October’s closing low to 23 per cent and left it about eight per cent below its all-time high. On June 15, the volume of call options on the S&P 500 Index jumped to a record.

“There’s a difference between a pause and a skip, and we could be underestimating how meaningful that is,” Gina Martin Adams, chief equity strategist at BI, said on Bloomberg Radio.Article content There’s a difference between a pause and a skip, and we could be underestimating how meaningful that isEquity bulls are getting some encouragement from headline inflation data. U.S. consumer prices rose four per cent in May from a year earlier, the slowest pace since 2021, according to data released last week. To be sure, the core reading has been stickier. Also last week, separate figures showed the longer-term trend of slowing goods consumption continues.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 7. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

U.S. stock market’s gains hinge on timing of Fed’s pause or skipHistory shows prospects for the bull market to keep running improve if Fed opts for a longer pause before its next rate increase. Read on.
Source: nationalpost - 🏆 10. / 80 Read more »