
The American economy may be “bad to ugly” at the present time, but investors love every minute of it
S&P futures increased by 0.74 % this morning after closing the same index by 0.73 % yesterday. Many of this jump came from technology shares: Nasdak The boat closed by 1.21 % after the explosive profit call from Palnter, which added another 3.62 %.
The current rise in Wall Street is a flagrant contradiction with what economists see in macro data. Last week’s bleak job report is the latest aspect. “We got what I call emptying economic data last week, and a lot of data. They were all uniformly bad for ugly,” Mark Zandy, chief economist in Moody’s analyzes, He said On the Concord CoalitionConfronting the future”
Zandy later added, “I took out the warning bells this weekend in this post, just because I really sat and started looking at all the data, go,” Oh my God! This economy is really struggling to move forward. “Thus, on the edge of the recession,” I think, applies. ”
So if the economy is fragile, then why do investors buy? Because they expect the Federal Reserve will save interest rates to save their bets. (The most cheaper money turns into a stronger demand for shares.)
Goldman Sachs is currently expecting to be there now three Discounts in prices this year: “A weak report in the United States in the United States last Friday (August 1) raised the market concerns about American economic expectations, which prompted a major march leading to the front end of the US prices. We see room for continuing to this norm, while continuing our basic expectations to reduce this,” luck.
His colleague Vicky Zhang says the basics – a bad job market and a decrease in consumer enthusiasm – are mainly ignored by stock traders today. She said in a research note: “The primary danger to pricing growth is something that threatens the market’s belief that it can be discussed through the current weakness and the discount of stagnation.”
Therefore, discounts from the Federal Reserve in the Post, right?
Not so quickly. Zandy is dark about it too. President Trump’s tariff and restricted immigration policy “provokes inflation and weak economic growth. So if you are in the federal reserve and you have a dual mandate to maintain full workers, economics, low and stable inflation, this becomes very difficult. How do you respond to that? The answer is to do nothing, and this is exactly what the Federal Reserve does.”
He also expects to sell the bond market, so … the fingers crossed, everyone!
Here is a snapshot of the procedure before the opening bell in New York:
- S & P 500 futures contracts It increased by 0.48 % this morning, Premark, after closing the index by 0.73 % yesterday.
- Stoxx Europe 600 0.5 % increased in early trading.
- UK FTSE 100 0.33 % decreased in early trading.
- Japan Nikki 225 It was 0.65 %.
- China CSI 300 It was flat.
- South Korea KosPI It was 0.92 %.
- India Elegant 50 It was a decrease of 0.48 %.
- Bitcoin It rose to 114.9 thousand dollars.
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