Fundamental Overview The S&P 500 rallied strongly on Friday as Fed Chair Powell tilted more dovish by saying that “with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.” That saw traders firming up expectations for a rate cut in September which now stands around … Read more
Fundamental Overview The US CPI yesterday came mostly in line with expectations and wasn’t strong enough to force a reassessment on a September cut. In fact, the pricing for the Fed actually increased from 57 bps of easing by year-end to 61 bps after the US CPI report. The majority of Fed voters are also … Read more
Fundamental Overview The soft NFP report on Friday weighed on the risk sentiment as growth expectations took a hit. The S&P 500 fell to new lows before erasing most of the losses today as Fed’s Williams said over the weekend that he would go into the September meeting with “very much an open mind”. Overall, … Read more
Fundamental Overview The upside for the S&P 500 has been supported all along by the lack of bearish drivers. In fact, Trump continues to get trade deals in the 10-20% range, which is widely expected and priced in by now, and the economic data has been showing a rebounding economy following the tariff-induced weakness in … Read more
Fundamental Overview The S&P 500 recently broke out of a tight range following lower than expected US inflation figures and strong US activity data. This positive growth impulse without concerning inflation developments (as of now) is keeping the upside intact given the lack of bearish drivers. Looking ahead, we have the August 1 tariff deadline … Read more
