S&P 500: The S&P 500 is Going Nowhere as Fed Hawks Insist More Rate Hikes Are Needed to Cool Inflation

 


The S&P 500 remains below the 4,000 level after Fed hawks came out and insisted that more rate hikes are needed to keep inflation on a downward trend. The market is concerned that the Fed could over-tighten though, and make the same mistakes as Ben Bernanke, which led to the Great Recession of 2008.

From the bond market data, the 2-year US Treasury yield could have peaked in November at 4.72%. Smart money is already selling the U.S. dollar and has moved to gold.

The S&P 500 moves next week are data dependent, a slew of US economic data (GDP, PCE and PMI) as well as big tech earnings. The good news is that the FOMC blackout period is approaching and there could be less noise from Fed hawks!

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!


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