Squawk on the Street Wild Ride for Stocks, Trump's New Choices, Suspect in Killing of UnitedHealth CEO Pleads "Not Guilty" 12/23/24
Dec 23, 2024
David Zervos, the Chief Market Strategist at Jefferies, discusses the intricate ways the Federal Reserve's interest rate policies are impacting market dynamics. He highlights the recent rebounds in the S&P 500 and how political shifts could influence future economic conditions. Zervos also delves into the challenges facing the retail sector, particularly post-pandemic changes, and scrutinizes the implications of rising debt and government spending cuts on economic growth. His insights provide a riveting look at the future of the markets.
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Market Volatility
- The S&P 500 had its best day in over a month, but also its worst week since the election.
- There are underlying signs of market decay, with eight S&P sectors down this month, and rising treasury yields and dollar.
Market Overreaction
- David Zervos believes the market overreacted to the Fed's recent statements.
- He predicts disinflation in 2025 and potential Fed rate cuts, exceeding the projected two.
New Economic Advisor
- President-elect Trump nominated Stephen Mirren to lead the Council of Economic Advisors.
- Mirren's recent paper criticizes Treasury Secretary Yellen's approach to debt issuance.