Yahoo Finance: “There’s a reason why stocks are moving higher — and it’s not just because of earnings”By admin_45 in IN THE NEWS
Excerpt from Yahoo Finance quoting DataTrek's Nick Colas:
.... "Corporate earnings are coming in better than expected. But that’s not the only factor responsible for the S&P 500’s record high earlier this week.
Investors are increasingly pricing in a more dovish Fed, according to Wall Street research shop DataTrek Research.
Data from CME’s FedWatch tool shows investors are increasingly pricing in higher odds of an interest rate cut.
In March, the Fed downgraded its prior 2019 rate hike guidance to zero hikes, compared to a forecast of two, which was released in December of 2018.
For the Fed’s June 2019 meeting, investors are pricing in a 21% chance of a rate cut, up from 7% a week ago.
For July, investors are pricing in a 28% chance of a cut, compared to 10% a week ago.
December is perhaps most striking, with investors seeing a roughly 60% chance of a rate cut, compared to over 40% a week ago"....
Read the full article here on Yahoo Finance!