Market ‘tug of war continues,’ BTIG’s Krinsky says
BTIG chief market technician Jonathan Krinsky said the market “continues to be in a tug of war between economic data and what the Fed might potentially do.”
Recent economic data has been weaker than expected “which is causing a bid to bonds and the perception that Powell might be ‘less hawkish’ at Jackson Hole,” Krinsky noted. “That could be enough to keep equities bid … but it’s not necessarily a ‘bullish’ scenario medium-term if eco data continues to weaken.”
European markets flat as global investors wait for Fed
Morgan Stanley says the ‘smart’ EV industry is tech’s next big thing. Here are its top stock picks
Morgan Stanley says tech supply chains are about to experience growth in the next big thing: smart tech features — from EV batteries to chips and self-driving tech.
The investment bank named its top stock picks that’s set to benefit from this trend.
— Weizhen Tan
Fed’s Kashkari says his biggest fear is inflation will be more persistent or hotter than anticipated
Federal Reserve bank of Minneapolis President Neel Kashkari says his biggest fear is that markets are underestimating how high inflation will go or how persistent it would be, adding that the Fed might need to be more aggressive than anticipated.
“The big fear I have at the back of my mind is if we’re wrong and markets are wrong, and that this inflation is much more embedded at a much higher level than we appreciate or markets appreciate,” he said, commenting on market expectations of inflation coming back down to 2% within the next two years.
“Then we’re going to have to be more aggressive than I anticipate, probably for longer, to bring inflation back down,” he said, speaking at an event at the University of Pennsylvania.
Kashkari also pointed towards supply-side shocks driving “half to two-thirds” of the nation’s high inflation.
“The more help we get from the supply side, the less the Fed has to do, and the better we’re able to avoid a hard landing,” he said. He did add, however, there’s some evidence that supply chains are beginning to normalize.
Kashkari is already considered the most hawkish of the U.S. central bank’s 19 policymakers, and expects the Fed to need to lift its policy rate — now at a target range of 2.25% to 2.5% — another two full percentage points by the end of next year.
CNBC Pro: Citi names the energy stock with the ‘strongest balance sheet’
The energy sector has been a big winner in this year’s volatile stock market.
But one stock still stands out for its “strongest balance sheet,”…