Stocks sold off on Friday as investors took to heart the reality of an economic slowdown hatched by the Fed. Bond yields jumped and interest rate sensitive stocks led equities lower.
The Fed made its pronouncement and now the markets are attempting to factor in not only future moves, but also the effects… and the collateral damage of the Central Banks assault on inflation. Economic forecasts are being revised downward as well as 2022 earnings growth. The proof will be in the pudding that arrives on the table over the next several weeks as key economic indicators are due to hit the tapes followed by earnings season which comes with low expectations. This week will be jam-packed with key economic numbers which will crescendo through Friday’s key Fed inflation figure. Next week will feature the monthly jobs report, and with the Fed hoping for a weaker number, investors are hoping for the same. Check out the attached economic calendar for the week for a roadmap.
This morning, markets are mostly lower on fears of a global economic slowdown as the dollar continues to rise, while the British Pound Sterling plumbs new depths. Bond yields across the curve are logging levels not seen in many years are good news for fixed income investors but scary for interest rate sensitive stocks investors. Futures are pointing to a lower open primarily by energy shares as economically sensitive crude oil notched lower. Crude is also pressured by the strong US Dollar. Shares of Schlumberger, Devon Energy, Halliburton, Occidental Petroleum, and Chevron top the list of energy stocks lower in this morning’s premarket. Premarket winners include Las Vegas Sands, Wynn Resorts, and MGM resorts as Macau gambling is expected to re-open soon.
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