Morning Bid: US Stocks fight the Fed as markets still not listening

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If you looked at red-hot stock markets without following central banks, you could well assume interest rates are being cut.

But while central bankers remain as worried about inflation as they have been since late 2021, markets seem to be worrying about nothing at all.into a bull market, defined as a 20% gain from a recent low, and closed on Thursday at a 14 month high. MSCI's broad gauge of world stocks is on track for a 2.9% weekly gain.

Rather than hearing this cue, markets are listening selectively, focusing on the growth narrative while continuing to push back against hawkish guidance. Traders price in less than a 70% chance of another rate rise in July.a savage recession, caused by rate rises, would crush equities and send cash flooding back into government bonds.

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