2024-04-07 06:30:00 ET
Summary
- The stock market is wobbling due to climbing rates and widening credit spreads as financial conditions tighten again.
- Liquidity flows turning as Bank Term Fund Program drains and reserve balances at the Fed likely peaked.
- Combination of tightening financial conditions and draining liquidity will be a headwind for stocks in 2024.
The stock market is wobbling because rates are climbing, and, more importantly, credit spreads are widening because financial conditions are now starting to tighten again. The process is beginning because the economy continues to come in better than expected, inflation is at risk of taking back off again, and it's increasingly more likely that the Fed may not be cutting rates as much as initially thought or at all. ...
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For further details see:
The S&P 500's Path Back To 4,100 In 2024