Why Fed's Powell speech on Friday likely matters less for stocks than a sputtering housing market

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 49 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 97%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Inflation, job losses and the cooling housing market are top factors that could drive a U.S. recession, according to Charles Schwab's Kevin Gordon.

Wall Street has been fixated on what Federal Reserve Chairman Jerome Powell might say Friday at the annual Jackson Hole, Wyo., economic symposium for clues about the central bank’s next steps on interest rates.

While the speech will matter, stock-market investors should also pay heed to weaker U.S. economic data, including falling home prices and slumping sales that point to a sputtering housing market, said Kevin Gordon, senior investment research manager at Charles Schwab & Co., in an interview Wednesday.

“The downside is the negative ripple effects, and how much of a role housing plays in the wealth effect,” Gordon said. The big debate now is whether a U.S. recession already has been priced into markets. The sharp summer rally in stocks in July and early August has been largely on pause in recent sessions, even after the S&P 500 index SPX and Dow Jones Industrial Average DJIA on Monday booked their sharpest daily declines in about two months.

The market has been pricing in roughly a 3.75% peak policy rate by mid-2023, from a 2.25-2.50% range currently, he said, with a “fairly quick reversal of some of those hikes” later in the year.

 

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

Abnb criminal probe crash 00000

Abnb criminal probe 0000

Idk man, if he doesn't double down on being a hawk, the green in stocks will be epic

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:

 /  🏆 3. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

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

European markets set to fall as hawkish Fed remarks dent global stocksEuropean markets are set to retreat Wednesday as new hawkish comments from a U.S. Federal Reserve policymaker keeps investors hesitant.
Source: CNBC - 🏆 12. / 72 Read more »

Kevin Durant, Nets Each Found Trade Market Less Appealing Than ExpectedKevin Durant, Nets Each Found Trade Market Less Appealing Than Expected - RealGM Wiretap What do expect their asking for to much lol like the the wolves and jazz trade lol Ah there's the reason why the news came out about everyone being together
Source: RealGM - 🏆 580. / 51 Read more »