What’s in Today’s Report:
- Four Bullish Assumptions Currently in the Market
- Weekly Market Preview: All About Powell (Speech on Friday)
- Weekly Economic Cheat Sheet: How Solid Is the Economy? (Important Growth Data This Week)
Futures are sharply lower as markets price in a greater chance of a hawkish speech from Fed Chair Powell this Friday.
Markets are reversing some of the “Fed Pivot” gains of the past few weeks ahead of Chair Powell’s speech in Jackson Hole on Friday, as investors fear the markets’ expectations for the Fed have become too dovish.
Economically, China cut interest rates again to stimulate the economy, although the rate cuts were small and stocks declined anyway, as the Chinese economy continues to face numerous large challenges (Zero COVID policy, drought, property market decline, etc.).
Today there are no Fed speakers and only one notable economic report, the Chicago Fed National Activity Index (E: -0.19), and as has been the case markets will want to see stability in the date to reinforce that the U.S. economy is not moving closer to stagflation.