Most people have not—and likely will not—realize one of the biggest side effects of the potential interest rate cuts being proposed by the Federal Reserve (the Fed). A cut in interest rates could help stimulate consumer activity, as U.S. consumer sentiment recently reached a 2021 high. However, it can also hurt those who choose not to consume. The average savings yield has lowered for the first time since 2021. As bank stocks, particularly commercial ones like Bank of America Co. (NYSE: BAC) and Citigroup Inc. (NYSE: C), get ready for the increasing chance of lower rates ahead, yields on savings accounts have begun to reflect this expectation. Now more than ever, average portfolios could use a bump in their dividend income components. .
Equity markets fell on Wednesday after a hotter-than-expected CPI report affirmed the growing fear there would be no interest rate cuts this summer. The CPI accelerated at the headline level and was flat at the core, hotter than forecast on all counts, indicating the Fed's work is far from over. Because the labor market data remains resilient and economic conditions healthy, the FOMC will unlikely cut rates until inflation is tamed, which could be a long way off. The cost of gasoline was a leading cause of inflation, and gasoline, along with diesel and other fuels, has a compounding influence on prices throughout the economic system.
The S&P 500 fell more than 1.3% at the session's low to set a two-week low. This is the longest and deepest pullback in the S&P 500 index, and the decline may not be over. Because the inflation outlook is heating up and the outlook for rate cuts is cooling down, the forecast for S&P 500 earnings growth in the second half is garbage. In this scenario, a reduction in the consensus forecast could undercut market action and lead the S&P 500 to a significant sell-off.
Most people have not—and likely will not—realize one of the biggest side effects of the potential interest rate cuts being proposed by the Federal Reserve (the Fed). A cut in interest rates could help stimulate consumer activity, as U.S. consumer sentiment recently reached a 2021 high. However, it can also hurt those who choose not to consume. The average savings yield has lowered for the first time since 2021. As bank stocks, particularly commercial ones like Bank of America Co. (NYSE: BAC) and Citigroup Inc. (NYSE: C), get ready for the increasing chance of lower rates ahead, yields on savings accounts have begun to reflect this expectation. Now more than ever, average portfolios could use a bump in their dividend income components.
The Swiss government Wednesday announced steps to bolster its "too big to fail" rules aimed at avoiding potentially disastrous fallout from banking sector turmoil after woes last year at Credit Suisse before it was taken over by rival UBS. Finance Minister Karin Keller-Sutter told reporters that the measures will aim to protect taxpayers — who were briefly on the hook to avoid a major banking sector collapse — and the Swiss economy overall. She said the steps would also involve "targeted and effective" proposals that help boost liquidity at financial institutions and rein in excessive bonuses ...
After trading down to 78% of its 52-week high, a price not seen since 2022, Wendy's Co. (NASDAQ: WEN) has become one of the best passive income strategies for retail investors today. Favored by analysts and backed by bullish projections, this stock offers the potential upside found in consumer discretionary stocks. At the same time, Wendy's business model, which focuses on affordability and convenience, also gives it some of the characteristics found in consumer staples stocks. Part of the low-beta stocks group, Wendy's low volatility gives shareholders another leg of stability. As l...
Macy's said Wednesday it has named two independent directors to its board that were pushed by activist investor Arkhouse Management, ending a proxy fight that aimed to replace most of the board and to acquire the iconic chain
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