Recession is challenging inflation as top fear among stock and bond investors

Recession is challenging inflation as top fear among stock and bond investors

It’s easy to want to duck for cover given the carnage seen this year in stocks and bonds, particularly with the Federal Reserve vowing to wage an unconditional battle against high inflation. While inflation running at a 40-year high still sits near the top of the list of worries for many investors, another potential bugaboo … Read more

Elon Musk joins the growing chorus fearing a US recession. But there are stocks for that.

Elon Musk joins the growing chorus fearing a US recession.  But there are stocks for that.

Look out above, the dip buyers are back in town. Stocks are soaring — for now — as Wall Street returns from a long holiday weekend, with Fed Reserve Chair Jerome Powell testifying in front of Congress this week. The buying mood comes after the S&P 500’s worst week since March 2020, including its fall … 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

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

Fink, Dimon and Musk have the blues. And one forecaster says they’re not gloomy enough

Fink, Dimon and Musk have the blues.  And one forecaster says they're not gloomy enough

That anxious hum among Wall Street executives is getting louder. US stock index futures are down, following stronger-than-forecast jobs data, with technology out in front. After crushing remote-work hopes of Tesla workers, CEO Elon Musk now reportedly wants a 10% headcount cut due to a “super bad feeling” about the economy. It’s been a week. … Read more

‘A game of catch and release’: Are recent stock-market rallies the beginning of a bull run?

'A game of catch and release': Are recent stock-market rallies the beginning of a bull run?

The US stock market’s deteriorated breadth means rallies may be short-lived, according to Charles Schwab’s chief investment strategist Liz Ann Sonders. “Even in the most brutal of bear markets, you get sharp, counter-trend rallies,” Sonders said in a phone interview Thursday. In her view, the stock market’s recent moves higher, like the one leading into … Read more

Why a top Wall Street quant sees S&P 500 taking back all its losses by yearend

Why a top Wall Street quant sees S&P 500 taking back all its losses by yearend

JP Morgan’s Marko Kolanovic, one of the most closely followed quantitative analysts on Wall Street, augured in a note to clients on Wednesday that US stocks could see a torrid rebound during the latter half of 2022. While Kolanovic’s boss (JPM CEO Jamie Dimon) helped spook markets on Wednesday with his talk of an economic … Read more

Investors sell off bonds and stocks as chances grow for another half-point rate hike by Fed in September

Investors sell off bonds and stocks as chances grow for another half-point rate hike by Fed in September

Expectations are growing that the Federal Reserve will deliver another half-percentage point rate increase in September after similar moves in June and July, triggering broad-based selloffs in both bonds and stocks on Wednesday. All three major US stock indexes finished lower, while an aggressive selloff across Treasurys pushed yields on 2- through 7-year maturities up … Read more

Fed’s quantitative tightening is about to arrive: What that might mean for markets

Fed's quantitative tightening is about to arrive: What that might mean for markets

The Federal Reserve’s almost $9 trillion portfolio is about to be reduced starting on Wednesday, in a process intended to supplement rate hikes and buttress the central bank’s fight against inflation. While the precise impact of “quantitative tightening” in financial markets is still up for debate, analysts at the Wells Fargo Investment Institute and Capital … Read more

Tesla’s Shanghai Plant Still Below Full Capacity. Tesla Stock Is Dropping.

Tesla's Shanghai Plant Still Below Full Capacity.  Tesla Stock Is Dropping.

Text size An aerial view of Tesla Shanghai Gigafactory Xiaolu Chu/Getty Images You’re here ‘s Shanghai factories are still not operating at full strength—but that’s not the only reason the EV company’s estimates still look too high. On Tuesday, Bloomberg reported Tesla (ticker: TSLA) will continue to operate its Shanghai facility in a closed-loop setting … Read more