Stocks fundamental forecast: neutral Overall, Wall Street finished lower this past week as recent upside momentum since October slowed. The Dow Jones
Stocks fundamental forecast: neutral
Overall, Wall Street finished lower this past week as recent upside momentum since October slowed.
The Dow Jones Industrial Average, which is comprised of mostly blue-chip, large-cap companies, was left unscathed. Meanwhile, the tech-heavy Nasdaq 100 fell 1.18 percent as the broader S&P 500 weakened 0.74%.
The focus for stock markets last week was mostly on Fedspeak, a couple of notable US economic data and even the UK’s government budget proposal. In terms of the former, Fed officials have been stressing that despite a slowdown in the pace of tightening, further hikes are likely necessary. St. Louis Fed President James Bullard offered notable comments, showing he wants to see rates at a minimum of 5%.
US retail sales for October also crossed the wires, and the data surprised higher. That continued hinting at resilient consumption in face of rising interest rates. All this meant that markets added back Fed interest rate hike projections for 2023. On the chart below, we are back to traders anticipating at least 50-basis point hikes next year. This likely explains the divergence between the Dow Jones and Nasdaq 100.
2023 fed rate hike bets
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