Strategist: Dow Selloff Reflects ‘Buy the Rumor, Sell the Fact’ on Fed Rate-Cut Signal Thursday’s selloff, which saw the Dow Jones Industrial Average on track for its largest one-day drop since May, was partly attributed to a series of weaker-than-expected economic data. The relationship between economic news and the stock...
Seven months into 2024, the stock market has shown robust performance, but July marked a significant shift. A “Great Rotation” began, moving investor funds away from Big Tech and toward value stocks and small-caps. On Wednesday, MarketWatch’s Joseph Adinolfi summarized July’s stock-market dynamics, highlighting how expectations of a change in...
A newly published white paper has ignited controversy on Wall Street and in Washington by accusing the Treasury Department of using short-term Treasury bills to manipulate the economy for political gain, potentially reigniting inflation. The paper, released last week, contends that the Treasury’s strategy of financing a substantial portion of...
This week, three of the world’s most influential central banks will reveal their monetary policy updates within about 32 hours. On Thursday, the Bank of England might reduce borrowing costs, while the Federal Reserve is expected to hold rates steady on Wednesday but may hint at a potential rate cut...
Sometimes, central-bank rate cuts can alarm rather than reassure investors, as shown by recent actions from the People’s Bank of China (PBOC) and comments from former New York Fed President William Dudley. On Thursday, the PBOC surprised markets by cutting its medium-term lending facility (MLF) rate to 2.3% from 2.5%,...
Technology stocks just had their worst day in nearly two years, and hedge-fund manager Bill Ackman received more bad news. But first, let’s focus on an important analysis by Michael Mauboussin, head of consilient research at Morgan Stanley Investment Management’s Counterpoint Global and adjunct professor at Columbia Business School, and...
