Wall Street Week
Bloomberg Wall Street Week - February 16th, 2024
Feb 17, 2024
Former Treasury Secretary Lawrence H. Summers discusses the potential Fed rate adjustments. Lisa Erickson dives into market pricing. Robert Steel talks about budget challenges. The conversation also touches on US foreign policy, global infrastructure investing, and the impact of the upcoming US election on foreign relations and market reactions.
38:07
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Quick takeaways
- Market reacts negatively to potential Fed rate hike, focusing on larger tech stocks' leadership.
- Non-agency mortgages offer extra income opportunities in fixed income market amidst low interest rates.
Deep dives
Market Reaction to CPI Numbers
The markets had a tough reaction to hot CPI numbers, reflecting a concern about the potential impact on the path of Fed rate cuts. The market had been driven by expectations of rate cuts, and any deviation from that path can lead to a challenging market reaction. The concentration of market leadership remains in larger stocks, particularly in the technology sector. While there have been attempts by smaller and cyclical companies to gain momentum, the leadership remains concentrated. This lack of broad market participation contributes to a cautious outlook for equities.
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