Up to this point, 72% of the S & P 500 stock index constituent companies have exceeded market expectations during the April-June financial results announcement season. It is less than 88% of the previous season. This week, Alphabet on the 26th, Meta Platforms on the 27th, and Apple and Amazon.com on the 28th will be followed by notable earnings announcements. High-tech giants have indicated a policy of curbing hiring against the backdrop of economic concerns, but further negative surprises are likely to significantly increase market volatility. Below are five news items to keep in mind as you start your day.
“Pain” forced by the Fed
The Federal Open Market Committee (FOMC) will meet on the 26th and 27thIt has decided to raise rates by 0.75 points, suggesting that it will continue to raise rates in the coming months. However, there are increasing voices pointing out that entering a recession and a large increase in unemployment are inevitable in order to significantly ease price pressure. Former Federal Reserve Board member Laurence Meyer said gross domestic product (GDP) would fall 0.7 points next year, unemployment would rise to 5%, and inflation would reach the official target of 2 in 2024. We anticipate an economic slowdown that will return to%.
“Not a recession”
US Treasury Secretary Janet Yellen has a broad U.S. economyHe said there were no signs of a recession. “It’s not a recession, it’s a widespread weakening of the economy,” Yellen said on an NBC show, “the pace of job creation is likely to slow down a bit.” I haven’t seen it. ” He said he “expected to succeed” in inflation control measures by financial authorities, showing confidence.
Bond market has been factored in
Bob Michael, a bond market veteran with more than 40 years of career and chief investment officer of JP Morgan Asset Management, predicted a 75% chance of a US recession over the next year and a half, but it’s already on the market.I think it has been woven. “Customers are returning to the fixed income market, especially in corporate bonds,” he said. “It’s because of the regaining confidence in the central bank,” he said.
Bitcoin bottoming out
Investors are beginning to wonder if the Bitcoin market has bottomed out as it rose about 15% in the month leading up to the 22nd. However, many investors have remained cautious based on their past experience. “Cryptocurrencies are now liquid assets, so as long as US monetary authorities are tightening, a sustained rise will be difficult,” said Matt Mayley of Miller Tabak.
Monkeypox “can be contained”
The infection is spreading “Regarding “monkeypox,” the White House’s new coronavirus coordinator, Jar, said in the United States, “it can be reliably contained” through testing and vaccination. The goal is to accelerate testing and inoculation and ultimately eradicate it. On the 23rd, the World Health Organization (WHO) declared the highest level of caution, “a public health emergency of international concern.”
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