{"id":950,"date":"2023-02-16T05:03:27","date_gmt":"2023-02-16T10:03:27","guid":{"rendered":"https:\/\/embarrdowns.com\/stock-market-uncertainty-grows-as-fed-rates-increase-and-inflation-rises\/"},"modified":"2023-02-16T05:03:28","modified_gmt":"2023-02-16T10:03:28","slug":"stock-market-uncertainty-grows-as-fed-rates-increase-and-inflation-rises","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/stock-market-uncertainty-grows-as-fed-rates-increase-and-inflation-rises\/","title":{"rendered":"Stock Market Uncertainty Grows as Fed Rates Increase and Inflation Rises"},"content":{"rendered":"

As the US central bank continues to raise rates from nearly zero to almost 5%, the outlook for the stock market is uncertain.[0]<\/a><\/sup> Investors are concerned that higher rates could curb price growth and crimp demand, while sapping economic growth.[0]<\/a><\/sup> Marko Kolanovic, a strategist at JPMorgan Chase & Co., has declared that he is becoming more cautious, suggesting that investors should not join in on the stock market rally of this year as \u201cthe possibility of a recession is not taken into account in the values of stocks.\u201d[1]<\/a><\/sup><\/p>\n

According to Kolanovic, it is likely that an economic downturn will be required in order to bring inflation back to the Federal Reserve’s goal of 2%. Moreover, there is only a small chance that the stock market will experience any increase in value. He cautioned that a recession will \u201ceventually be necessary\u201d to bring inflation back to central-bank targets and said the potential upside for markets is likely \u201cfairly limited,\u201d given stretched valuations and high rates.<\/p>\n

On Tuesday, the U.S. Bureau of Labor Statistics reported that the consumer-price index increased by 0.5% in January, resulting in a year-over-year rate of 6.4%.[2]<\/a><\/sup> Government data released on Friday revealed that the US added 517,000 jobs in January, far exceeding the 185,000 nonfarm payrolls estimate predicted by economists surveyed by Bloomberg.[3]<\/a><\/sup> The US unemployment rate dropped to 3.4%, its lowest point in over half a century.[3]<\/a><\/sup><\/p>\n

Jeremy Siegel, a professor at Wharton, anticipates a rise in stock prices and a decrease in house prices.[0]<\/a><\/sup> He stated in the interview that the tremendous tightening, one of the greatest in history, has yet to be felt in its effects.[4]<\/a><\/sup> I suggest that they cease their actions at this point; I believe there is sufficient proof that prices have dropped, which means they could take a break and monitor the situation.[4]<\/a><\/sup> The experienced professor once again expressed his opinion that the Dow Jones Industrial Average stock index will increase by 18%, reaching 40,000 points by the year 2025.[5]<\/a><\/sup><\/p>\n

Morgan Stanley strategists warned that earnings expectations for 2023 are still about 20% too high, and stocks could plunge 24% in the first half of the year as companies feel the pinch of tighter financial conditions.[6]<\/a><\/sup> According to Wilson, the price is extremely disconnected from reality during this bear market.[7]<\/a><\/sup> Year-to-date, the S&P 500 has seen an impressive increase of nearly 9%, and it has risen approximately 20% since its low point in[8]<\/a><\/sup><\/p>\n

0. <\/span>“Wharton’s Siegel: Stocks will keep surging, house prices will tumble” Markets Insider, 9 Feb. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/jeremy-siegel-wharton-stocks-house-prices-market-outlook-predictions-fed-2023-2<\/a><\/a><\/p>\n

1. <\/span>“JPMorgan’s Kolanovic Urges Investors to Ditch Stocks for Bonds” Financial Post, 13 Feb. 2023, https:\/\/financialpost.com\/pmn\/business-pmn\/jpmorgans-kolanovic-urges-investors-to-ditch-stocks-for-bonds<\/a><\/a><\/p>\n

2. <\/span>“\u2018Underlying bullish tenor\u2019: U.S. stocks fare surprisingly well as Treasury yields rise after hotter-than-expected inflation, says Morgan Stanley\u2019s Andrew Slimmon” MarketWatch, 14 Feb. 2023, https:\/\/www.marketwatch.com\/story\/underlying-bullish-tenor-u-s-stocks-fare-surprisingly-well-as-treasury-yields-rise-after-hotter-than-expected-inflation-says-morgan-stanleys-andrew-slimmon-76c0299d<\/a><\/a><\/p>\n

3. <\/span>“\u2018Edge of a swamp\u2019: JPMorgan strategist sees \u2018one time only sale\u2019 in fixed income as U.S. economy slows” MarketWatch, 7 Feb. 2023, https:\/\/www.marketwatch.com\/story\/edge-of-a-swamp-jpmorgan-strategist-sees-one-time-only-sale-in-fixed-income-as-u-s-economy-slows-11675774251<\/a><\/a><\/p>\n

4. <\/span>“Wharton professor Jeremy Siegel warns the blowout US jobs report may be bad news for stocks – and could lead t” Business Insider India, 6 Feb. 2023, https:\/\/www.businessinsider.in\/stock-market\/news\/wharton-professor-jeremy-siegel-warns-the-resilient-us-economy-may-be-bad-news-for-stocks-and-could-lead-to-a-recession-this-year\/articleshow\/97648621.cms<\/a><\/a><\/p>\n

5. <\/span>“Wharton’s Siegel: strong US jobs data may hit stocks, lead to recession” Markets Insider, 6 Feb. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/wharton-siegel-jobs-report-economy-stock-market-outlook-fed-recession-2023-2<\/a><\/a><\/p>\n

6. <\/span>“The stock market has runway to continue its rally until April – and then investors should expect to feel the pain of weak …” msnNOW, 8 Feb. 2023, https:\/\/www.msn.com\/en-us\/money\/markets\/the-stock-market-has-runway-to-continue-its-rally-until-april-and-then-investors-should-expect-to-feel-the-pain-of-weak-corporate-earnings-veteran-strategist-says\/ar-AA17fPzp<\/a><\/a><\/p>\n

7. <\/span>“Morgan Stanley Strategists Say Stocks Ignore Fed, Earnings Reality By Bloomberg” Investing.com, 13 Feb. 2023, https:\/\/www.investing.com\/news\/stock-market-news\/morgan-stanley-strategistssaystocks-ignore-fed-earnings-reality-3001446<\/a><\/a><\/p>\n

8. <\/span>“The stock market’s risk-reward is as bad as it’s been during this bear market as the Fed keeps hiking into an” Business Insider India, 13 Feb. 2023, https:\/\/www.businessinsider.in\/stock-market\/news\/the-stock-markets-risk-reward-is-as-bad-as-its-been-during-this-bear-market-as-the-fed-keeps-hiking-into-an-earnings-recession-morgan-stanley-says\/articleshow\/97885581.cms<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

As the US central bank continues to raise rates from nearly zero to almost 5%, the outlook for the stock market is uncertain.[0]<\/a><\/sup> Investors are concerned that higher rates could curb price growth and crimp demand, while sapping economic growth.[0]<\/a><\/sup> Marko Kolanovic, a strategist at JPMorgan Chase & Co., has declared that he is becoming more cautious, suggesting that investors should not join in on the stock market rally of this year as \u201cthe possibility of a recession is not taken into account in the values of stocks.\u201d[1]<\/a><\/sup><\/p>\n

According to Kolanovic, it is likely that an economic downturn will be required in order to bring inflation back to the Federal Reserve’s goal of 2%. Moreover, there is only a small chance that the stock market will experience any increase in value. He cautioned that a recession will \u201ceventually be necessary\u201d to bring inflation back to central-bank targets and said the potential upside for markets is likely \u201cfairly limited,\u201d given stretched valuations and high rates.<\/p>\n

On Tuesday, the U.S. Bureau of Labor Statistics reported that the consumer-price index increased by 0.5% in January, resulting in a year-over-year rate of 6.4%.[2]<\/a><\/sup> Government data released on Friday revealed that the US added 517,000 jobs in January, far exceeding the 185,000 nonfarm payrolls estimate predicted by economists surveyed by Bloomberg.[3]<\/a><\/sup> The US unemployment rate dropped to 3.4%, its lowest point in over half a century.[3]<\/a><\/sup><\/p>\n

Jeremy Siegel, a professor at Wharton, anticipates a rise in stock prices and a decrease in house prices.[0]<\/a><\/sup> He stated in the interview that the tremendous tightening, one of the greatest in history, has yet to be felt in its effects.[4]<\/a><\/sup> I suggest that they cease their actions at this point; I believe there is sufficient proof that prices have dropped, which means they could take a break and monitor the situation.[4]<\/a><\/sup> The experienced professor once again expressed his opinion that the Dow Jones Industrial Average stock index will increase by 18%, reaching 40,000 points by the year 2025.[5]<\/a><\/sup><\/p>\n

Morgan Stanley strategists warned that earnings expectations for 2023 are still about 20% too high, and stocks could plunge 24% in the first half of the year as companies feel the pinch of tighter financial conditions.[6]<\/a><\/sup> According to Wilson, the price is extremely disconnected from reality during this bear market.[7]<\/a><\/sup> Year-to-date, the S&P 500 has seen an impressive increase of nearly 9%, and it has risen approximately 20% since its low point in[8]<\/a><\/sup><\/p>\n

0. <\/span>“Wharton’s Siegel: Stocks will keep surging, house prices will tumble” Markets Insider, 9 Feb. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/jeremy-siegel-wharton-stocks-house-prices-market-outlook-predictions-fed-2023-2<\/a><\/a><\/p>\n

1. <\/span>“JPMorgan’s Kolanovic Urges Investors to Ditch Stocks for Bonds” Financial Post, 13 Feb. 2023, https:\/\/financialpost.com\/pmn\/business-pmn\/jpmorgans-kolanovic-urges-investors-to-ditch-stocks-for-bonds<\/a><\/a><\/p>\n

2. <\/span>“\u2018Underlying bullish tenor\u2019: U.S. stocks fare surprisingly well as Treasury yields rise after hotter-than-expected inflation, says Morgan Stanley\u2019s Andrew Slimmon” MarketWatch, 14 Feb. 2023, https:\/\/www.marketwatch.com\/story\/underlying-bullish-tenor-u-s-stocks-fare-surprisingly-well-as-treasury-yields-rise-after-hotter-than-expected-inflation-says-morgan-stanleys-andrew-slimmon-76c0299d<\/a><\/a><\/p>\n

3. <\/span>“\u2018Edge of a swamp\u2019: JPMorgan strategist sees \u2018one time only sale\u2019 in fixed income as U.S. economy slows” MarketWatch, 7 Feb. 2023, https:\/\/www.marketwatch.com\/story\/edge-of-a-swamp-jpmorgan-strategist-sees-one-time-only-sale-in-fixed-income-as-u-s-economy-slows-11675774251<\/a><\/a><\/p>\n

4. <\/span>“Wharton professor Jeremy Siegel warns the blowout US jobs report may be bad news for stocks – and could lead t” Business Insider India, 6 Feb. 2023, https:\/\/www.businessinsider.in\/stock-market\/news\/wharton-professor-jeremy-siegel-warns-the-resilient-us-economy-may-be-bad-news-for-stocks-and-could-lead-to-a-recession-this-year\/articleshow\/97648621.cms<\/a><\/a><\/p>\n

5. <\/span>“Wharton’s Siegel: strong US jobs data may hit stocks, lead to recession” Markets Insider, 6 Feb. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/wharton-siegel-jobs-report-economy-stock-market-outlook-fed-recession-2023-2<\/a><\/a><\/p>\n

6. <\/span>“The stock market has runway to continue its rally until April – and then investors should expect to feel the pain of weak …” msnNOW, 8 Feb. 2023, https:\/\/www.msn.com\/en-us\/money\/markets\/the-stock-market-has-runway-to-continue-its-rally-until-april-and-then-investors-should-expect-to-feel-the-pain-of-weak-corporate-earnings-veteran-strategist-says\/ar-AA17fPzp<\/a><\/a><\/p>\n

7. <\/span>“Morgan Stanley Strategists Say Stocks Ignore Fed, Earnings Reality By Bloomberg” Investing.com, 13 Feb. 2023, https:\/\/www.investing.com\/news\/stock-market-news\/morgan-stanley-strategistssaystocks-ignore-fed-earnings-reality-3001446<\/a><\/a><\/p>\n

8. <\/span>“The stock market’s risk-reward is as bad as it’s been during this bear market as the Fed keeps hiking into an” Business Insider India, 13 Feb. 2023, https:\/\/www.businessinsider.in\/stock-market\/news\/the-stock-markets-risk-reward-is-as-bad-as-its-been-during-this-bear-market-as-the-fed-keeps-hiking-into-an-earnings-recession-morgan-stanley-says\/articleshow\/97885581.cms<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":949,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/950"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=950"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/950\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/949"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}