NASDAQ Composite (^IXIC)
- Yahoo Finance Video
Fed's rate decision relies on consumer strength: Strategist
Despite the lingering uncertainty, investors remain hopeful that the Federal Reserve will decide to cut rates in the near future. Joining the Morning Brief, State Street Macro Multi-Asset Strategist Cayla Seder discusses why she believes consumer resilience will drive the Fed's decision on rate cuts. Seder suggests a rate cut could materialize in 2024, although "the biggest risk for markets right now" is if the cut comes too soon. She notes that consumers remain resilient despite the inflationary environment. According to Seder, the upcoming release of the Consumer Price Index (CPI) data next week is crucial for gaining insights into the consumer's state. She will look for "a rollover in inflation and a move lower in inflation numbers," coupled with continued consumer resilience. When assessing the markets, Seder cautions that "the progress on inflation is likely going to be very slow." Therefore, she advises investing in sectors like technology and communications, which may offer opportunities amid the current economic landscape. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith
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3 catalysts for commodities: U.S. Bank Strategist
US Bank Asset Management Group CIO Eric Freedman joins Market Domination to break down three catalysts that could drive US commodities growth. He points to ongoing "human tragedies" that will continue to rely on commodities. “Our hearts are with those affected. That’s certainly more important than financial matters. But that’s an area we think will not be solved immediately or necessarily quickly,” Freedman says. Freedman's second potential commodities catalyst is the economic growth of foreign countries. “If you look at what’s happening in Europe, if you look what’s happening even in non-Japan Asia, there’s some real strength and momentum,” he explains, adding that international growth could increase demand for US commodities. He adds that China could also be a major player, as the nation is “really trying to export their way to growth. They need commodities to make that happen.” For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl
- Yahoo Finance Video
Stocks are thankful for strong earnings season amid inflation
US Bank Asset Management Group CIO Eric Freedman joins Market Domination to discuss his outlook on equity markets (^DJI, ^IXIC, ^GSPC) as inflation is anticipated to remain high. “It’s really that broadening out effect that we think is gonna take hold as we get deeper into this quarter,” Freedman explains. He points to current robust corporate profits and widespread gains from earnings as good indicators for the market. Despite inflationary pressures anticipated to accelerate, Freedman isn’t particularly worried. He says he expects inflation to increase at levels that will not cause a significant impact on corporate profits. “With a lot of inflation data coming in next week, there’s a potential for some downward pressure in the very near term,” he adds. “We think that owning commodities makes some sense and still owning stocks alongside commodities is a way for clients to be participating in both phenomena,” Freedman tells Yahoo Finance's Josh Lipton and Julie Hyman. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl
