Equity markets rebounded Tuesday and what has been the trending, up 1 day and down the next day routine. The S&P 500 (SPX) expressed another turn around Tuesday by rising roughly 6% on the day, only to be surpassed by the Nasdaq (NDX), which rose nearly 6.5% on the trading session. But with turn around…
Over the weekend the Federal Reserve, saying “the coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” cut interest rates to essentially zero and launched a massive $700 billion quantitative easing program to shelter the economy from the effects of the virus. Unfortunately, the stock market recognizes that…
Things are getting ugly and policymakers are swinging into action. We now find ourselves in the extraordinary position that interest rates in the US, euro-zone, Japan and the UK have now returned to close what central banks in each case believe is their effective lower bound. As the scale of the economic and market disruption…
This article appeared first in the Wall Street Journal by Nick Timiraos Updated March 15, 2020 5:03 pm ET The Federal Reserve slashed its benchmark interest rate to near zero on Sunday and said it would buy $700 billion in Treasury and mortgage-backed securities in an aggressive bid to prevent market disruptions from aggravating what…
A quick Finom Group housekeeping note: Due to travel engagements this coming weekend, we will be foregoing our weekly Research Report this weekend and be back on schedule in the following week. Our usual SOTM video will be due out Thursday evening! Does it seem like “forever ago” that we were looking ahead to 2020…
It was the worst day for the market since 2008 and a day that wiped out the gains from the last 12 months. Keep that in mind… the last 12 months. When you see that number it should be understood that much of the historic data that positions an occurrence in the market, followed by…
“A collapse in stock markets, co-ordinated policy statements and emergency interest rate cuts: the events of the past week have inevitably led to comparisons to October 2008. But the differences are as significant as the similarities. To understand why it’s helpful to think about the underlying economic forces that are at play. The crisis of…
By Alexander Osipovich March 5, 2020 6:00 am ET Trading conditions have sharply deteriorated in a popular vehicle for betting on swings in the S&P 500, exacerbating the volatility in the stock market in the past two weeks. E-mini S&P 500 futures play a huge, if little understood, role in financial markets, with hundreds of…
After investor optimism that supported the largest 1-Day rise in the Dow Jones Industrial Average (DJIA) on Monday and with all major averages rallying sharply, “turn around Tuesday” took on a new form. While the major averages didn’t lose everything they recaptured on Monday, they were all lower by nearly 3% in the trading session.…
It’s never advisable to short the market when it’s known that central banks are likely to respond to perceived exogenous economic shocks. Friday’s S&P 500 lows are a perfect example of such inadvisable action, with the low of the trading session and seemingly trough in recent correction at 2,855 and a close roughly 100 points…
