What the Fed’s biggest rate hike in decades means for the bear market in bonds

What the Fed’s biggest rate hike in decades means for the bear market in bonds

Historically bad. That’s how the mammoth $ 53 trillion US fixed-income market has performed this year as the Federal Reserve works to curtail high inflation threatening to wreck the economy. To turbo charge the effort, the Fed on Wednesday fired off its biggest benchmark interest rate increase in nearly thirty years. But what does that … Read more

US inflation expected to keep running hot: Traders see 4 straight months of roughly 9% or higher CPI readings

US inflation expected to keep running hot: Traders see 4 straight months of roughly 9% or higher CPI readings

Just a day after Federal Reserve policy makers delivered their biggest rate hike in 28 years, the US inflation outlook continues to look dire in one obscure part of the financial market. Traders of so-called fixings, or derivatives-like instruments related to Treasury inflation-protected securities, expect four straight months of annual headline consumer-price index readings at … Read more

Why stocks and bonds went into relief-rally mode after Fed’s jumbo rate hike

Why stocks and bonds went into relief-rally mode after Fed’s jumbo rate hike

Financial markets suffered an absolute bloodbath in the days leading up to Wednesday’s Federal Reserve decision, with stocks plunging and bond yields soaring in the wake of surprisingly hot inflation data – a sign that investors feared a more Volcker-esque reaction from Federal Reserve Chairman Jerome Powell and the rest of the Federal Open Market … Read more

In `fragile ‘financial markets ahead of Fed’s decision, some traders and strategists see risk of instant recession

In `fragile ‘financial markets ahead of Fed’s decision, some traders and strategists see risk of instant recession

Financial markets are on precarious footing since last Friday’s surprise reading on accelerating US inflation for May – with Treasurys, stocks, credit and currencies all exhibiting friction or tension ahead of the Federal Reserve’s interest-rate decision on Wednesday. According to strategist Ben Emons and trader Tom di Galoma, the process of transmitting monetary policy through … Read more

Some homes in Provo, Utah, drew 50 offers at the peak of the housing boom. Economists are now warning of ‘overvalued’ property markets.

Some homes in Provo, Utah, drew 50 offers at the peak of the housing boom.  Economists are now warning of ‘overvalued’ property markets.

Moving to Utah was a no-brainer for Leola Broussard. Broussard, who previously rented a home from a friend in the pricey Stanford – Palo Alto area south of San Francisco, where housing costs, she told MarketWatch, are “just totally outrageous.” Over the two years of the pandemic, many Americans, like Broussard, have flocked to Utah, … Read more

Strategist who nailed the recent S&P 500 top says three things are needed for a market bottom

Strategist who nailed the recent S&P 500 top says three things are needed for a market bottom

Wariness is in order after the S&P 500’s bear-market finish and a potential 75 basis-point Fed hike just one day away. Gains for stock futures and a potential bounce are fading fast. Morgan Stanley’s Mike Wilson, who can count some wins after pounding the table this year over a gloomy stock setup, told clients on … Read more

Tightening of financial conditions accelerates, recession fears grow as May CPI report becomes multi-day trading event

Tightening of financial conditions accelerates, recession fears grow as May CPI report becomes multi-day trading event

Financial markets convulsed on Monday as investors considered the prospects of US inflation accelerating, not decelerating, after the release of May’s consumer-price index report. Signs of the sentiment shift since Friday’s data release were evident in the fast-paced tightening of financial conditions, plus an outlook for more aggressive Federal Reserve rate hikes. Gains in the … Read more

The ‘best’ and ‘worst’ places in America for first-time home buyers

The ‘best’ and ‘worst’ places in America for first-time home buyers

Angelenos, congratulations – you officially live in one of the worst metro areas for first-time home buyers, according to a new study by Bankrate.com. Out of the 50 largest metro areas studied, Los Angeles ranked 49th in affordability, 48th in employment factors, 30th in safety, and 39th in housing-market tightness, as the supply of homes … Read more

Dow tumbles as inflation reading triggers market shock waves: What investors need to know

Dow tumbles as inflation reading triggers market shock waves: What investors need to know

From Wall Street to Main Street, fears that the US economy could be sliding into 1970s-style “stagflation” have been percolating. References to the sticky situation appeared in news headlines all week. The Associated Press called it “the dreaded ‘S’ word.” The Wall Street Journal reminded readers of the neologism’s origins as a catchy way to … Read more

These 19 big tech stocks have now dropped at least 60% from their 52-week highs

These 19 big tech stocks have now dropped at least 60% from their 52-week highs

The latest inflation figures on June 10 were worse than expected and the effect on stock prices was brutal. A list of stocks in the S&P 500 and the Nasdaq-100 Index that have fallen at least 60% from 52-week highs is below. The consumer-price index report for May from the Bureau of Labor Statistics came … Read more