Stocks were heavily impacted by the Federal Reserve’s announcement on Wednesday that interest rates will remain higher for a longer period than initially anticipated.
Over a two-day period, the S&P 500 experienced a decline of over 2%, while the yield on the 10-year Treasury, which serves as a benchmark, reached its highest level in 15 years. Bank of America’s data for the week revealed that investors sold off equities at the fastest pace since December 2022.
However, Fundstrat’s head of research, Tom Lee, believes that this reaction may be exaggerated.
In a video for clients after the market closed on Thursday, Lee stated, “The market had an overly hawkish reaction to the FOMC meeting.”
Lee disagrees with one of the main drivers behind the market’s response. The Federal Reserve’s updated Summary of Economic Projections (SEP), released on Wednesday, indicated a leaning towards one more interest rate hike this year and revealed that the central bank now expects interest rates to remain higher than initially projected in both 2024 and 2025.
Lee does not…
2023-09-22 13:27:30
Source from finance.yahoo.com
rnrn
