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Dow Jones Industrial Average (^DJI)
- Yahoo Finance Video
Fed's rate decision relies on consumer strength: Strategist
Despite the lingering uncertainty, investors remain hopeful that the Federal Reserve will decide to cut rates in the near future. Joining the Morning Brief, State Street Macro Multi-Asset Strategist Cayla Seder discusses why she believes consumer resilience will drive the Fed's decision on rate cuts. Seder suggests a rate cut could materialize in 2024, although "the biggest risk for markets right now" is if the cut comes too soon. She notes that consumers remain resilient despite the inflationary environment. According to Seder, the upcoming release of the Consumer Price Index (CPI) data next week is crucial for gaining insights into the consumer's state. She will look for "a rollover in inflation and a move lower in inflation numbers," coupled with continued consumer resilience. When assessing the markets, Seder cautions that "the progress on inflation is likely going to be very slow." Therefore, she advises investing in sectors like technology and communications, which may offer opportunities amid the current economic landscape. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith
- Yahoo Finance Video
Dow rallies, Trump calls on big oil: Market Domination Overtime
The Dow Jones Industrial (^DJI) closed its seventh straight day of gains while the Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) started their day in the red. The Federal Reserve released an assessment over how big banks would fare during climate crisis events in the northeast. Former President Donald Trump was reportedly talking to big oil CEOs to raise $1 billion while his campaign in dire straits, making certain promises if he is re-elected. For more expert insight and the latest market action, click here
- Yahoo Finance Video
3 potential risks to equities this strategist anticipates
US Bank Asset Management Group CIO Eric Freedman sees three major concerns for domestic equities, beginning with the commercial real estate sector. “If we see some challenges to fixed-income, we see some auctions go the wrong way, and interest rates turn higher, that could be a challenge for commercial real estate,” he explains to Yahoo Finance. He adds that the sector will certainly feel pressure if rates breach a 5% level. His second concern lies in potential challenges to liquidity: “Whether it was what was happening in the Treasury market, whether it was happening with the tapering process from the Fed, that’s something that we think will reverse in May." Freedman’s third and final concern is reliance on large-cap tech: “We do think that corporate CapEx [capital expenditure] is still there. We think there’s still delivery in terms of corporations spending on big data, AI, as well as cyber,” he explains, adding: “If those reverse, we’d have some concerns." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl
