@theMarket: A Week to RememberBy Bill Schmick, 03:02PM / Friday, October 04, 2024 | |
It was a week to remember in financial markets. Hurricane Helene, the longshoreman strike, Iran's ballistic missile attack against Israel, American drones shot down by Houthi rebels, and a massive gain in U.S. jobs — welcome to October.
All the above happened in just the first week of the month. The stock market has hung in there through all of it. However, the events of the week have given heartburn to investors and traders alike.
The massive flooding and rising death toll in Florida and North Carolina were tragic but also negative for overall future growth and employment. The price tag is estimated to be above $34 billion. Insurance stocks did 0 Comments Read More >> |
@theMarket: China Stimulus Boosts World MarketsBy Bill Schmick, 11:32AM / Saturday, September 28, 2024 | |
A week after the U.S. central bank's policy shift, Chinese authorities unleashed their monetary policy dragon. The move caught world financial markets by surprise and launched the Shanghai Composite index up more than 9 percent in three days.
The People's Bank of China (PBOC) launched its largest stimulus package since the pandemic. The PBOC cut interest rates, reduced the reserve requirement ratio, and introduced structural monetary policies to stabilize Chinese markets, which went straight down for months.
Wall Street analysts are overwhelmingly negative on the Chinese market. Investments in Chinese stocks by Institutional investors 0 Comments Read More >> |
@theMarket: Fed's Half-Point Rate Cut Surprised MarketsBy Bill Schmick, 03:08PM / Friday, September 20, 2024 | |
The Federal Reserve Bank's half-point interest rate cut surprised investors and traders alike this week. The central bank also indicated that the markets could expect more of the same in the months ahead.
The main three averages soared on the news on Thursday and into Friday. New highs went a long way in dispelling my fears that the last two weeks of September would be rocky. The giant-sized rate cut may have at least delayed the downside that usually accompanies this seasonal period in the stock market.
It was the first FOMC meeting in a long time where Fed watchers were unsure how much the central bank would lower rates. Historically, a 25-basis point 0 Comments Read More >> |
@theMarket: Fed Expected to Begin Interest Rate Cuts Next WeekBy Bill Schmick, 03:50PM / Friday, September 13, 2024 | |
After two years of monetary tightening, the Federal Reserve Bank is poised to begin loosening its policy. Is the event already priced in or will the stock market celebrate with new highs?
It may depend on how deep a cut the Fed is willing to make. In my opinion, in the long run it won't matter unless you are one of those day-to-day options traders who live or die based on the next trade. Nonetheless, in a market that may well hit a new high next week, what the Fed does and how it talks about future cuts will be important.
Some believe the Fed should cut one-half of a percent (50 basis points), while others are in the camp that it will only need a 0 Comments Read More >> |
@theMarket: September Into October Could Be Bumpy for StocksBy Bill Schmick, 03:36PM / Friday, August 30, 2024 | |
We enter September with the three major averages close to or above yearly highs. Momentum is still on the side of the bulls. As such, in the next week or so, markets could attempt to scale those heights and possibly better them.
It is what happens next that concerns me. The next two months are seasonally the worst period for the stock market. However, investors also expect the Federal Reserve Bank to cut interest rates at their meeting on Sept. 17-18. That is normally a bullish development for stocks. We won't know if the Fed will cut rates, but the markets are betting heavily on that outcome.
The macroeconomic data this week certainly reinforced those 0 Comments Read More >> |
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