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Stock market?


human1234

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6 hours ago, human1234 said:

Inflation came more than expected but still stocks up. Nothing seems to stop it. Even though happy about it, what could happen next? Would companies increase hiring as they have to show more growth to meet Wall Street expectations? or would layoffs happen more as they can't grow to meet Wall Street expectations and cut costs? Or this is just a bubble?

 

With people having so much money because of stock prices up and house prices up, Inflation target of 2% is hard to achieve. Even if fed increases interest rates to 10%, stocks will find some way to go up. silent_I1

You might want to consider anxiety meds

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12 hours ago, human1234 said:

Inflation came more than expected but still stocks up. Nothing seems to stop it. Even though happy about it, what could happen next? Would companies increase hiring as they have to show more growth to meet Wall Street expectations? or would layoffs happen more as they can't grow to meet Wall Street expectations and cut costs? Or this is just a bubble?

 

With people having so much money because of stock prices up and house prices up, Inflation target of 2% is hard to achieve. Even if fed increases interest rates to 10%, stocks will find some way to go up. silent_I1

Stock market will collapse after the interest rates are reduced. Atleast, traditionally has been the case. 

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The market is forward-looking and has already digested all the negative news. With the Fed announcing no further interest rate hikes and the possibility of cuts, the market is no longer concerned about CPI and is in line with expectations. However, high interest rates are counterproductive in this scenario, as they contribute to more inflation. How? Rent comprises 60% of the report, and when interest rates are high, housing becomes expensive or unaffordable for many. Additionally, high interest rates discourage people from selling their homes or relocating as they locked into low interest rates, resulting in low inventory and thus artificially inflating prices despite the high interest rates. This situation is fueling significant inflation in renting.

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