Most of this rally was due to rumors that the federal reserve was going to cut rates sooner that thought. Now that this has been pushed aside and the federal reserve is talking of hiking rates what could be the outcome at the next meeting if they do decide to hike rates by .25 to 5.5%.
okay so 50% of it, Im not wrong, when this market was touching new highs nearly every person talked about how the federal reserve was going to cut rates as early as the end of this year. Markets like this type of talk. If we get inflation data that is showing inflation on the rise tomorrow and wednesday expect the federal reserve to raise rates next week.
You are right about many of the buyers considering the possbility of rate cuts in the near future, but that isn't the driving force of this rally. Also, there is an exceptionally low chance that there will be a rate increase next week. There might be some tough talk, especially if PPI/CPI numbers come in high. But if there is a rate increase, it won't be for another couple months. They really need to see whether or not they've gone too high too fast.
Time for a new poll: The futures will go up everyday: A. Forever B. Forever and 1 day C. Until every bear is dead even the real ones.
this rally is not fed-induced. there are several reasons for the rally - one of the more prominent ones is we were so bearish for so long. every piece of good news was sold between may and august. now, every piece of bad news is bought. IMO, this rally will last longer then the correction earlier this year, if only because the high-percentage moves have been weaker and less frequent as we have moved up then when we moved down.
Uh oh, there was just a drive by shooting at my local zoo. 3 grizzlies dead, believed to have been gang related but we know better.