Hopes of ‘Goldilocks’ economy, rate peak buoy stocks

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 92%

United States News News

United States United States Latest News,United States United States Headlines

A test of the economy comes this coming week, when the U.S. reports employment numbers for July

. While comparatively strong employment data has been a driver of this year’s stock rally, signs that the economy is growing at too rapid a pace could spark worries that the Fed will need to raise rates more than expected.

Kalman, of Miramar Capital, believes there’s a growing chance the Fed may need to raise rates beyond their current 5.50% threshold and hold them there for longer than expected, an outcome he worries could dampen the economy and hurt risk assets.Many are also assessing the durability of a rally in tech stocks, which has been fueled in part by excitement over developments in artificial intelligence.

Still, some investors have been looking outside of tech stocks for further gains, wary of rising valuations. The S&P 500 tech sector now trades at 28.2 times forward earnings, from 19.6 at the start of the year. Yet he also believes stocks are in the “early stages” of their recovery after falling into a bear market last year.

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:

 /  🏆 5. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United States United States Latest News, United States United States Headlines

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

Kitco daily macro-economic/business digest - July 27
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »