WKLY - Was April's Correction Noise Or Signal For Global Markets?
2024-05-07 04:45:00 ET
Summary
- April was a rough month for investors, but the rebound in asset prices in the early days of May has revived expectations that the worst has passed.
- Deceleration in economic activity could come back to bite if the slowdown has substantial downside momentum.
- Fed funds futures this morning are pricing in moderately high odds for the first rate cut in September, a conspicuous shift from a week ago.
April was a rough month for investors, but the rebound in asset prices in the early days of May has revived expectations that the worst has passed. A key catalyst for the turnaround in sentiment: Friday's US payrolls data, which posted a substantially softer-than-expected rise in April. The crowd views the news as a net positive because it lifts the odds that the Federal Reserve will cut interest rates this year....
Was April's Correction Noise Or Signal For Global Markets?