fed chair jerome powell will try to reassure lawmakers it is doing everything it can to help. he will talk on a hawkish tone likely to raise interest rates and how that s the key tool to lowering inflation. but he ll have to explain why a rising rate environment will bring prices down but won t send the u.s. economy into a deep recession. that is what the market will be looking for, clarity on the speed and scale at which this economy softens. just this morning citi group racing the probability of the worm economy facing a recession to 50%. goldman sachs economist also said the risk of a recession is growing. powell will need to address that when he testifies today. thank you both. be safe out there, eugene.
blink of an eye in early afternoon we saw the market stage this big recovery. the carnage was really centered around technology stocks. investors recently have been questioning whether in a rising rate environment these companies like facebook, google, apple that have taken out debt can continue to outperform. now, the fed s two-day meeting does begin today where the focus will be on just how much the central bank plans to raise rates. is it three or four times? the exact plan, that is what wall street wants to know and how the fed plans to combat high inflation. the timing, right now the expectation from investors is that multiple rate hikes will begin in march. so chair jay powell has a busy two days ahead of him. the commentary from him will be key and the market, of course, will be hanging on every word. we are also watching earnings. we are in the thick of earnings season right now, mika, big heavyweights which could set the
start in negative territory. we are looking at stocks in japan hitting a two-year low. the focus around technology has really been around, yes, this is a sector that has done very well since the onset of the pandemic. in fact, if you look at the s&p 500, technology has been the biggest winner. we have seen the biggest rebound in those companies. so there has been this broader conversation around valuations, should these stocks run up this fast, does it make sense. again, if the fed is expected to turn the tap on, continue to raise rates in an aggressive manner, can the larger companies that are sitting on debt, that rely on a lower rate environment, can they continue to do well in this type of move. now, in terms of yesterday s dramatic rebound, a lot of assumptions be made. yes, perhaps investors coming in midday to buy the dip. perhaps many people thought that the sell-off that we initially saw was overdone. today s performance and the weekly performance, that will perhaps provide ju
In this report, we identify the emerging trends that are impacting insurance for the tech sector, with a specific review of the property, general liability, and workers’ compensation.
recovery? large stimulus or a stalled recove ? , ., recovery? the risks right now seem to be recovery? the risks right now seem to be perceived - recovery? the risks right now seem to be perceived that. recovery? the risks right now| seem to be perceived that you don t want to be too late in stemming potential inflation but at the same time the economic recovery is still fragile, there are still dislocations in the job fragile, there are still dislocations in thejob market that we are seeing in the us and so that needs to be taken into account too and so when i think of this and think what the implications could be for the implications could be for the overall stock market, it makes me continue to advocate for a more balanced approach to investing, so still maintaining some of those more expensive technology companies that have done well in a low rate environment, but how strong secular growth tail, being exposed to sg, secular growth tail, being exposed to 56, but at the same time