Commentary
The financial markets are reeling.
Those who followed the proverbial “sell in May and go away” are sitting in a relatively good position. For everyone else? The U.S. stock market officially entered bear market territory, and the Federal Reserve delivered a massive 75 basis point rate hike, the biggest benchmark rate increase since 1994. Meanwhile, several well-known technology companies have announced layoffs. With the first of many expected rate hikes behind us, how are investors feeling heading into July? And do we have market capitulation yet?
The Fed acted forcefully in an attempt to bring down inflation, with a rate cut that was widely expected by the market yet contradicted initial Fed remarks that 75 basis points was off the table. Regardless, inflation readings were higher than expected and the central bank had to act, with Chairman Powell using the word “nimble” to describe actions going forward….