It’s going to be a bruising day in US equities today, at least at the start.
S&P 500 futures are down 1.4%, or 69 points to 4972 with Nasdaq futures down 1.8%. It’s been a hay day for tech stocks in particular over the past few months and a re-think in the rate cut path could lead to some re-thinking on stocks, or at least some profit taking. The economic data this year has all pointed in the same direction — hotter.
Now that’s a good thing in many ways as well, if the economy runs at +3% this year with rates at 5.25-5.50%, that’s a lot of dry powder for the Fed when a downturn eventually comes.
Spoos