32 days ago • Posted by Paul de La Baume
#Caution remains the norm for most #markets #trading #stocks $SPY $QQQ
Concerns that interest rate hikes may cause a recession are keeping investors on edge about the outlook of the economy as rising food and energy costs squeeze consumers and the stock market has trended down this year. Some strategists continue to be cautious about markets, expecting downward revisions to earnings estimates in the coming months. So far, the earnings picture has been resilient and the partial removal of Covid restrictions in China could act as a positive catalyst. It could reduce supply-chain bottlenecks and ease inflationary pressures. Today will mark the first day of the Fed's shrinking of its USD8.9 trillion balance sheet. Later today, US PMI, new orders, and JOLTs job openings will be followed for more data on the strength of the economy. The S&P500 is slightly higher pre-market.