The Wall Street started the day on a positive note, but concerns over a potential recession resurfaced as weak US retail sales data were released. Additionally, a statement from a Fed member, Harker, made it clear that interest rates would need to be raised further, especially if the banking crisis were to stabilize. Despite strong earnings reports from major US banks, the statement weighed heavily on investor sentiment.
Later in the day, the University of Michigan’s consumer sentiment survey reported an unexpected surge in inflation expectations among Americans, causing a sharp increase in US Treasury yields. As a result, the mood on the Wall Street turned sour, and the overall bullish trend was temporarily stalled.
Despite these setbacks, the Federal Reserve’s commitment to lower interest rates even if a recession does not occur has provided some reassurance to investors. However, the US stock markets are still considered to be overvalued, which could lead to a market correction in the future.
It remains to be seen how the Wall Street will develop in the next few days. The market may experience some volatility due to the ongoing uncertainty around inflation and interest rates. However, investors will likely remain focused on corporate earnings reports and other economic data, which may provide some insight into the overall health of the US economy.
Overall, the current outlook for the Wall Street is mixed, and investors will need to closely monitor market trends and indicators to make informed decisions about their investments.