The hawkish tone of the Fed is coming home to roost today in equities and I think we can take J Powell at his word. As it stands today – another 50 basis point rate hike on 2/1/2023 (my words not his).
The S&P500 is off a giant 2.5% at this moment–and at the low of day.
Todays unemployment claims number was below expectations–employment would appear to be remaining relatively strong. Other economic signs were kind of weak–but far from falling off a cliff. But through all these economic signs the 10 year treasury is off 4 basis points around 3.46% as the bond market continues to see weakness sometime in the future. Plenty of cross currents in these markets.
Just ‘eyeballing’ preferreds and baby bonds they appear to be generally red–but more of the nickel and dime stuff–nothing serious. The last time I said this mid day prices hammered lower in the afternoon so hope this isn’t jinxing things for the rest of the day.
Well let’s see if the markets can turn a bit higher for the rest of the day–but as I type the S&P500 is at the low of day.