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\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

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Follow The Distributed

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\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

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Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

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\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

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\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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ADVERTISEMENT
\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

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\n
\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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ADVERTISEMENT
\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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By subscribing, you agree with our privacy and terms.

Follow The Distributed

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ADVERTISEMENT
\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

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Follow The Distributed

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\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

U.S. Stocks And Inflation<\/h2>\n\n\n\n

Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n

U.S. Stocks And Inflation<\/h2>\n\n\n\n

Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n

Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n

U.S. Stocks And Inflation<\/h2>\n\n\n\n

Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n

Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n

Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n

U.S. Stocks And Inflation<\/h2>\n\n\n\n

Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n

Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n

Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n

Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n

U.S. Stocks And Inflation<\/h2>\n\n\n\n

Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Breach of Trust in Block Trading<\/h2>\n\n\n\n

The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n

Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n

Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n

Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n

U.S. Stocks And Inflation<\/h2>\n\n\n\n

Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n

Breach of Trust in Block Trading<\/h2>\n\n\n\n

The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n

Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n

Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n

Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n

U.S. Stocks And Inflation<\/h2>\n\n\n\n

Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

\"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n

Breach of Trust in Block Trading<\/h2>\n\n\n\n

The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n

Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n

Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n

Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n

U.S. Stocks And Inflation<\/h2>\n\n\n\n

Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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ADVERTISEMENT
\n

The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n

\"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n

Breach of Trust in Block Trading<\/h2>\n\n\n\n

The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n

Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n

Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n

Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n

U.S. Stocks And Inflation<\/h2>\n\n\n\n

Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

According to a statement <\/a>by the regulator, these allegations involve improperly leaking confidential information ahead of bulk share sales. Morgan Stanley, a longstanding dominator in block trades, has been under SEC scrutiny since 2019. Pawan Passi, the former Head of the US Equity Syndicate Desk, faced charges of breaching trust by leaking confidential information.<\/p>\n\n\n\n

The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n

\"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n

Breach of Trust in Block Trading<\/h2>\n\n\n\n

The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n

Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n

Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n

Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n

U.S. Stocks And Inflation<\/h2>\n\n\n\n

Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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ADVERTISEMENT
\n

Morgan Stanley has agreed to pay $249 million to settle federal investigations surrounding misconduct in its lucrative block trading business. The Securities and Exchange Commission (SEC) has charged the bank and its former Head of the US Equity Syndicate desk with fraud.<\/p>\n\n\n\n

According to a statement <\/a>by the regulator, these allegations involve improperly leaking confidential information ahead of bulk share sales. Morgan Stanley, a longstanding dominator in block trades, has been under SEC scrutiny since 2019. Pawan Passi, the former Head of the US Equity Syndicate Desk, faced charges of breaching trust by leaking confidential information.<\/p>\n\n\n\n

The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n

\"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n

Breach of Trust in Block Trading<\/h2>\n\n\n\n

The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n

Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n

Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n

Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n

U.S. Stocks And Inflation<\/h2>\n\n\n\n

Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

Major Banking Institutions<\/h2>\n\n\n\n

By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

A Change in Perspective<\/h2>\n\n\n\n

Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

Federal Reserve Strategy<\/h2>\n\n\n\n

The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

What This Means for the Economy<\/h2>\n\n\n\n

The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

A Technical Perspective<\/h2>\n\n\n\n

From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

\"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

\"\"
The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14 15 … 27

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
  • Morgan Stanley has been under the SEC's scrutiny since 2019.<\/li>\n<\/ul>\n\n\n\n

    Morgan Stanley has agreed to pay $249 million to settle federal investigations surrounding misconduct in its lucrative block trading business. The Securities and Exchange Commission (SEC) has charged the bank and its former Head of the US Equity Syndicate desk with fraud.<\/p>\n\n\n\n

    According to a statement <\/a>by the regulator, these allegations involve improperly leaking confidential information ahead of bulk share sales. Morgan Stanley, a longstanding dominator in block trades, has been under SEC scrutiny since 2019. Pawan Passi, the former Head of the US Equity Syndicate Desk, faced charges of breaching trust by leaking confidential information.<\/p>\n\n\n\n

    The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n

    \"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n

    See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n

    Breach of Trust in Block Trading<\/h2>\n\n\n\n

    The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n

    Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n

    Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n

    Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n

    U.S. Stocks And Inflation<\/h2>\n\n\n\n

    Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

    The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

    Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

    Major Banking Institutions<\/h2>\n\n\n\n

    By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

    JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

    Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

    In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

    A Change in Perspective<\/h2>\n\n\n\n

    Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

    This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

    Federal Reserve Strategy<\/h2>\n\n\n\n

    The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

    See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

    What This Means for the Economy<\/h2>\n\n\n\n

    The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

    A Technical Perspective<\/h2>\n\n\n\n

    From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

    As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

    Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

    \"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

    \"\"
    The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

    The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

    See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

    Central Bank And Inflation<\/h2>\n\n\n\n

    Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

    Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

    This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

     \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

    Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

    1 … 11 12 13 14 15 … 27

    Most Read

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    Follow The Distributed

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    \n
  • The allegations involve the improper leaking of confidential information in bank trading violations.<\/li>\n\n\n\n
  • Morgan Stanley has been under the SEC's scrutiny since 2019.<\/li>\n<\/ul>\n\n\n\n

    Morgan Stanley has agreed to pay $249 million to settle federal investigations surrounding misconduct in its lucrative block trading business. The Securities and Exchange Commission (SEC) has charged the bank and its former Head of the US Equity Syndicate desk with fraud.<\/p>\n\n\n\n

    According to a statement <\/a>by the regulator, these allegations involve improperly leaking confidential information ahead of bulk share sales. Morgan Stanley, a longstanding dominator in block trades, has been under SEC scrutiny since 2019. Pawan Passi, the former Head of the US Equity Syndicate Desk, faced charges of breaching trust by leaking confidential information.<\/p>\n\n\n\n

    The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n

    \"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n

    See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n

    Breach of Trust in Block Trading<\/h2>\n\n\n\n

    The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n

    Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n

    Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n

    Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n

    U.S. Stocks And Inflation<\/h2>\n\n\n\n

    Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n

    The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n

    Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n

    Major Banking Institutions<\/h2>\n\n\n\n

    By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n

    JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n

    Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14931,"post_author":"18","post_date":"2024-01-10 07:51:17","post_date_gmt":"2024-01-09 20:51:17","post_content":"\n

    In a recent survey conducted by the New York Federal Reserve<\/a>, Wall Street's major banks have recalibrated their predictions regarding the Federal Reserve's balance sheet drawdown. This shift suggests that the U.S. central bank might conclude its quantitative tightening (QT) process later than initially anticipated.<\/p>\n\n\n\n

    A Change in Perspective<\/h2>\n\n\n\n

    Previously, primary dealers\u2014major banks\u2014projected that the QT process would conclude by the third quarter. However, the sentiment has evolved. According to the latest survey taken before the Fed's December 12-13 policy meeting, these banks now foresee the QT process ending in the fourth quarter.<\/p>\n\n\n\n

    This adjustment carries significant implications. If these predictions materialize, the Federal Reserve's balance sheet<\/a> will likely shrink to approximately $6.75 trillion, down from its current level of roughly $7.764 trillion. Moreover, banks estimated that the central bank's reverse repo facility would hold $375 billion when QT concludes, a reduction from the anticipated $625 billion as forecasted in October.<\/p>\n\n\n\n

    Federal Reserve Strategy<\/h2>\n\n\n\n

    The quantitative tightening process has been an integral part of the Federal Reserve's strategy to combat inflation. Alongside rate hikes, the central bank initiated large-scale purchases of Treasury bonds and mortgage-backed securities during the COVID-19 pandemic's onset in 2020. This move led to an expansion of its holdings to approximately $9 trillion by mid-2022. However, since last year, the Fed has been gradually reducing its balance sheet size, although specific guidance on the timeline remains somewhat ambiguous.<\/p>\n\n\n\n

    See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n

    What This Means for the Economy<\/h2>\n\n\n\n

    The recalibrated timeline for QT indicates a more prolonged period of balance sheet reduction. As the Federal Reserve continues to navigate its policy decisions, market participants, businesses, and consumers should monitor these developments closely. Changes in the balance sheet size can influence interest rates, liquidity conditions, and overall financial market dynamics.<\/p>\n\n\n\n

    A Technical Perspective<\/h2>\n\n\n\n

    From a technical standpoint, the Federal Reserve's<\/a> balance sheet management serves as a critical tool in its monetary policy arsenal. The evolving predictions by Wall Street's primary dealers underscore the complexities involved in forecasting economic variables, such as inflation and interest rates.<\/p>\n\n\n\n

    As the QT process continues, policymakers and market participants must remain vigilant, considering the potential ramifications for financial stability and economic growth. This dynamic landscape necessitates ongoing analysis and adaptation to ensure that monetary policy objectives align with evolving economic conditions.<\/p>\n","post_title":"Decoding Wall Street's Shift: A Closer Look At Wall Street's Changing Perspective","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"decoding-wall-streets-shift-a-closer-look-at-wall-streets-changing-perspective","to_ping":"","pinged":"","post_modified":"2024-01-10 07:51:25","post_modified_gmt":"2024-01-09 20:51:25","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14931","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14888,"post_author":"14","post_date":"2024-01-06 18:33:09","post_date_gmt":"2024-01-06 07:33:09","post_content":"\n

    Wall Street's main indexes fell at the beginning of the 2024 year as investors locked in profits after a very successful 2023 and are currently waiting for the Federal Reserve's<\/a> meeting that could offer hints on its interest rate path. Ken Polcari, managing partner at Kace Capital Advisors, said:<\/p>\n\n\n\n

    \"The decline yesterday, today, and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is - are rates going down five or six times as it appeared to be at the end of last year?\"<\/em><\/p>\n\n\n\n

    \"\"
    The Nasdaq Composite kicked off the year with a 1.5% drop pressured by a selloff in the tech sector<\/figcaption><\/figure>\n\n\n\n

    The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

    See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

    Central Bank And Inflation<\/h2>\n\n\n\n

    Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

    Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

    This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

     \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

    Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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    By subscribing, you agree with our privacy and terms.

    Follow The Distributed

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    \n