Stocks fell last week, with the S&P 500 shedding 2.4% to close at 4,224.16, the lowest level since June 1. The index is now up 10% year to date, up 18.1% from its October 12, 2022 closing low of 3,577.03, and down 11.9% from its January 3, 2022 record closing high of 4,796.56.
Quick take: I think I’d be more concerned if the end of rate hikes this cycle were happening amid a high likelihood of a recession. ButDespite three years of rising interest rates, interest expenses haven’t really budged for S&P 500 companies. From BofA: "The effective interest rate is on the rise, but only back to pre-COVID levels."
Quick take: On one hand, this has been bullish for corporate profit margins. On the other hand, it’s no wonder From Powell’s prepared remarks: "…inflation is still too high, and a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal. … Given the uncertainties and risks, and how far we have come, the Committee is proceeding carefully.
France Dernières Nouvelles, France Actualités
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