As is often the case, the real driver of the stock market is actually the bond market.
The Fed's skimpy quarter-point rate increase on Wednesday, and chair Jerome Powell's clear acknowledgment of the inflation slowdown, have investors betting that few — if any — hikes for the Fed funds rate are still to come from the central bank. We know this from looking at data from the market for Fed funds futures, where investors speculate and hedge positions using futures contracts on the short-term rate that the Fed raises to slow the economy.Data provided by the CME Group, where Fed funds futures trade, show the market-implied odds of the Fed funds rate hitting 5% at the central bank's May meeting have fallen rapidly in recent months.
Now, the futures market puts odds of the Fed raising the rate to 5% — that would likely be a quarter-point increase at the next two meetings — at basically one in three.Decent Q4 earnings reports, coupled with easier-than-previously-thought Fed policy and better-than-expected gross domestic product numbers, have given the markets a heckuva lift to start the year.Not everybody believes this rally is for real.
"What's happening now is just another bear market trap, in our view, as investors have been forced once again to abandon their fundamental discipline in fear of falling behind or missing out," Wilson wrote earlier this week.
Day late.
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:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Groundhog Day WATCH LIVE 2023: Punxsutawney Phil reveals whether 2023 will see early springPunxsutawney Phil will emerge at Gobbler's Knob in Punxsutawney, Pennsylvania, around 6:30 a.m. Thursday to predict whether or not spring will come early this year.
Source: dcexaminer - 🏆 6. / 94 Read more »
Ford entering F1, 2023 Porsche 911 Dakar, 2023 Hyundai Ioniq 6: The Week In ReverseFord announced it's returning to F1, we drove the 2023 Porsche 911 Dakar, and the 2023 Hyundai Ioniq 6 received EPA range ratings. It's the Week in Reverse, right here at Motor Authority. Ford announced it's returning to F1 racing in 2026. A new partnership with Red Bull Racing will see Ford work closely with the team's power unit division, and mark the...
Source: motorauthority - 🏆 61. / 68 Read more »
Crypto Markets Analysis: Bitcoin and Ether’s Divergent 2023 Paths May Present Opportunity for Crypto InvestorsEther’s declining correlation to bitcoin in net position may provide opportunity for investors. A return to correlation norms would suggest a price mover higher. GWilliamsJr_CMT writes
Source: CoinDesk - 🏆 291. / 63 Read more »
First Mover Americas: Network Update Lifts AVAXLayer 1 Avalanche’s AVAX rallied 15% on Thursday following the protocol’s network update called “Banff 8” that went live. LedesmaLyllah reports. LedesmaLyllah Extreme caution of the $BLZ currency, I swear it will drop sharply to $0.0600❌🚫📛⛔️🔻🔻 LedesmaLyllah 🔺🔥🤝 LedesmaLyllah Great news for AVAX holders! AVAX is one of the most advanced blockchain protocols and this update shows that it has staying power, which could make its tokens even
Source: CoinDesk - 🏆 291. / 63 Read more »
First Mover Americas: Binance Returns to South Korea Via GOPAX.binance has re-entered South Korea by acquiring a majority stake in crypto exchange GOPAX. LedesmaLyllah reports. binance LedesmaLyllah Mafia binance LedesmaLyllah LFG 🇰🇷🇰🇷🇰🇷 binance LedesmaLyllah Scammer !!!!
Source: CoinDesk - 🏆 291. / 63 Read more »
ABB sees demand 'normalising' in 2023 after stock build-upsSwiss engineering company ABB expects demand for its products to 'normalise' during 2023, it said on Thursday, after customers built up stocks and pre-ordered to avoid supply chain disruptions and component shortages last year.
Source: Reuters - 🏆 2. / 97 Read more »