DIA - Sorry Campers The Fed Is Not Riding To The Rescue
2024-04-11 15:08:13 ET
Summary
- Wednesday might have marked a significant turning point for the market and investors.
- Expectations for cuts to the Fed Funds rates continued to be pushed back as inflation continues to be stubbornly "sticky."
- Combined with deteriorating credit conditions, the market seems very vulnerable to a significant pullback.
- In the paragraphs below, we highlight some of the dangers in the market investors are overlooking as potential help from the Federal Reserve continues to be pushed out on the horizon.
Wednesday was a true inflection point for the market and investors, or it should have been, at least. In a series of recent disappointing readings on the inflation front, the March CPI report came in slightly hotter than expected on Wednesday. This triggered a selloff in treasury bonds and the yield on the 10-Year Treasury (US10Y), which ended the day at 4.55%. Investors did breathe a slight sigh of relief Thursday morning when the March PPI reading came in slightly better than expectations....
Sorry Campers, The Fed Is Not Riding To The Rescue