Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

WarGamer

(13,362 posts)
Thu Apr 4, 2024, 06:48 PM Apr 2024

Fed signals no rate cuts this year... DOW down 500+

Stock market today: Stocks slide after Fedspeak as oil surges, March jobs report on deck

https://finance.yahoo.com/news/stock-market-today-stocks-slide-after-fedspeak-as-oil-surges-march-jobs-report-on-deck-200259217.html



Stocks slumped on Thursday as oil hit its highest price in six months and a key Federal Reserve official floated a warning that interest rate cuts might not come in 2024.

The Dow Jones Industrial Average (^DJI) fell almost 1.4%, or 550 points while the S&P 500 (^GSPC) dropped 1.2%. The tech-heavy Nasdaq Composite (^IXIC) slipped 1.4%. This marked the S&P 500's worst single-day drop since Feb. 13.

All three major averages reversed strong midday gains after Minnesota Fed President Neel Kashkari suggested the Fed may not cut interest rates at all this year if inflation progress stalls. The positive market action also paused amid a spike in oil prices.


Not cutting rates would be devastating in an election year... inflation is stuck and home affordability is an issue.

Couple that with rising oil prices and continuing wars...
12 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies

SWBTATTReg

(22,742 posts)
3. Ohhhh...somebody isn't happy. Crap, the markets have been up for a long time. Most people in the know
Thu Apr 4, 2024, 06:56 PM
Apr 2024

should have taken some off the table, ran away w/ at least some of the profits preserved. The markets have been up for a long long time. I'm surprised that they are still up there. I'm not advocating for a crash, just seems that it's against long-term trends, that the market is still up there, when usually there's a boom/bust cycle going on. Perhaps the naysayers against Biden should look at this more closely, obviously the markets like what Pres. Biden is (and or not) doing.

BootinUp

(48,075 posts)
4. I disagree with your title. This is not a signal
Thu Apr 4, 2024, 07:09 PM
Apr 2024

From the fed. It is one fed official. The drop is not huge either. Energy is volatile.

WarGamer

(13,362 posts)
5. The promise of rate cuts has been essential to the market rising this year.
Thu Apr 4, 2024, 07:12 PM
Apr 2024

The official word from JPow is "no imminent cuts" until inflation closer to 2%

His minions are clearly saying none to one in 24... predicting 5.25-5.5%. EOY

unc70

(6,212 posts)
6. Minion is full of it
Thu Apr 4, 2024, 07:20 PM
Apr 2024

This is the kind of crap you usually get from pundits, analysts , and people running pump-and-dump.

WarGamer

(13,362 posts)
9. Good Morning, KOAD...
Fri Apr 5, 2024, 09:02 AM
Apr 2024

Hot jobs numbers REDUCE the possibility of rate cuts...

https://www.marketwatch.com/livecoverage/march-jobs-report-live-coverage-of-payrolls-data-expected-to-show-strong-growth/card/jobs-report-leans-against-an-earlier-cut-by-the-fed-economist-says-Czkqtz42DtCyo8HgEXyC

Today's stronger-than-expected jobs report makes it more likely that the Federal Reserve will have to wait to reduce interest rates, according to Ali Jaffery, senior economist at CIBC Capital Markets.

"Overall, the March employment report leans against an earlier cut by the Fed," Jaffery wrote in a note.

Minneapolis Fed President Neel Kashkari on Thursday warned it’s possible that the U.S. central bank might not cut rates this year.


https://www.marketwatch.com/livecoverage/march-jobs-report-live-coverage-of-payrolls-data-expected-to-show-strong-growth/card/jobs-report-big-picture-labor-market-still-too-strong-for-the-fed-s-liking-3gW5y5rNd6aSMO717Jtl

Federal Reserve VIPs want to see signs of labor-market softening before they cut interest rates. They got a few signs of it in March.

The jobs market isn’t quite as robust as it was a few years ago, but it can’t be characterized as anything but strong. Businesses are still hiring, layoffs are low and the unemployment rate is a near a 50-year bottom.

If the Fed were to cut rates soon, it could actually boost hiring and potentially push wages higher - exactly what the central bank doesn't want.

Johnny2X2X

(19,964 posts)
10. Pretty strange considering Powell said the opposite the day before
Fri Apr 5, 2024, 09:12 AM
Apr 2024

There's always disagreement among Fed members, but Powell's words should carry more weight than some random Minnesota Fed guy.

Latest Discussions»General Discussion»Fed signals no rate cuts ...