AD

Need to Know: The Fed may turn investors into stock haters just in time for the next upturn. Boomers may lead the...

Logo MarketWatch
MarketWatch
By Barbara Kollmeyer

A powerful, tech-led stock surge may be on the cards for Thursday, with Facebook parent Meta Platforms in the drivers seat after less disastrous than feared results.

AD
AD

With earnings, inflation, a COVID-19 resurgence and war all in the balance, any equity gains could easily disappear in another sell-the-rip move. Wariness abounds as gross domestic product data loom, along with Amazon and Apple results due later.

On to our call of the day from TS Lombards chief U.S. economist, Steven Blitz, who sees the golden era of Fed-controlled equity markets coming to an end. (h/t The Market Ear).

As Blitz explained, if equity market weakness continues, with the S&P 500 SPX, +0.21% down 12% year to date, consumers may slash spending by the end of this year, if not sooner.

The Feds communicated policy trajectory was intended to weaken equities equities and the dollar are the Feds main conduits to impact the economy and, in turn, inflation, said the economist, in a recent note. An acceleration of current market weakness adds to our expected near-term downswing in spending and, more critically, threatens to embed a much weaker outlook for spending heading into next year.

As for the connect between consumer spending and stock market performance, Blitz noted ties have tightened up since the global financial crisis of 2007-08, when households reacted by long-tail deleveraging of their balance sheets. He talked about how that sparked the Feds creation of an asset cycle centered on stocks, and households charged into equities because TINA [There is No Alternative] and the market only goes up, right?

Continue read on marketwatch.com

AD
Logo Benzinga
Zinger Brief The market is digesting a major transition from a period of unprecedented government stimulus and dovish Fed policies to a period of...

Logo Nasdaq
By Archishma Iyer April 22 (Reuters) - Most emerging Asian stock markets fell on Friday, following Wall Street's weak performance overnight and a spike in...

Logo Nasdaq
By Archishma Iyer April 22 (Reuters) - Most emerging Asian stock markets fell on Friday, following Wall Street's weak performance overnight and a spike in...

Logo Nasdaq
By Susan Mathew and Anisha Sircar April 11 (Reuters) - Most emerging market currencies outside Asia gave up early sluggishness to firm as the dollar moved...

Logo RTTNews
With the Federal Reserve's next monetary policy meeting looming, the central bank released its Beige Book on Wednesday. The Beige Book, a compilation of...

Logo RTTNews
With the Federal Reserve's next monetary policy meeting looming, the central bank released its Beige Book on Wednesday. The Beige Book, a compilation of...

Logo Nasdaq
MarketsBy Rtt News20 Apr
(RTTNews) - With the Federal Reserve's next monetary policy meeting looming, the central bank released its Beige Book on Wednesday. The Beige Book, a...

Logo Bitcoin.com
Hedge fund manager Michael Burry, famed for forecasting the 2008 financial crisis, says that the Federal Reserve “has no intention of fighting inflation.” He...

Logo The Financial Express
US-listed travel stocks see optimism creeping back in as holiday season looms Warren Buffetts Berkshire Hathaway buys major stake in HP, shares soar 14.75%...

Logo The Financial Express
US-listed travel stocks see optimism creeping back in as holiday season looms Warren Buffetts Berkshire Hathaway buys major stake in HP, shares soar 14.75%...

Logo Nasdaq
By Lewis Krauskopf NEW YORK, April 15 (Reuters) - U.S. stock investors worried geopolitical uncertainty and the Federal Reserve's fight against inflation...

Logo Nasdaq
By Tejaswi Marthi April 7 (Reuters) - Asian equities and currencies fell on Thursday as hawkish comments from the U.S. Federal Reserve sparked a selloff in...

Logo Benzinga
Zinger Brief If inflation continues to be an issue, Harris said Americans will likely shift their spending from higher-priced products to lower-priced ones...

Logo Nasdaq
By Saqib Iqbal Ahmed NEW YORK, April 14 (Reuters) - U.S. stock investors are increasingly turning to the options market for protection against more downside...

Logo Nasdaq
By Lewis Krauskopf, Bansari Mayur Kamdar and Praveen Paramasivam April 5 (Reuters) - Wall Street's main indexes fell on Tuesday, dragged by weakness in tech...

Logo Benzinga
Zinger Brief Cathie Wood notes that the 10-year to 3-month yield curve is steep ahead of Fed interest rate hikes. Wood says not only the U.S., but Europe and...

Logo The Financial Express
EconomyBy Guest 8 Apr
US-listed travel stocks see optimism creeping back in as holiday season looms Warren Buffetts Berkshire Hathaway buys major stake in HP, shares soar 14.75%...

Logo The Financial Express
US-listed travel stocks see optimism creeping back in as holiday season looms Warren Buffetts Berkshire Hathaway buys major stake in HP, shares soar 14.75%...

Logo Investing.com
© Reuters By Yasin Ebrahim Investing.com -- The S&P 500 was flat Friday, as gains in financials and energy offset weakness in tech stocks amid pressure...

Logo Nasdaq
the 10-day buy (to open) call/put volume ratio on VIX futures is approaching the November 2021 levels that preceded a 4% pullback from the early-November...