Economic News

‘The housing market may have to go through a correction’: Mortgage rates hit 6.29%, Freddie Mac says

The numbers: U.S. mortgage rates continue to climb, adding hundreds of dollars in costs to potential homeowners. The increase in mortgage rates followed the Federal Reserve hiking interest rates again to address the worst inflation the economy has faced in 40 years.  The 30-year fixed-rate mortgage averaged 6.29% as of September 15, according to data …

‘The housing market may have to go through a correction’: Mortgage rates hit 6.29%, Freddie Mac says Read More »

The Dow tumbled 500 points because Jerome Powell’s Fed ‘isn’t going to blink’

It took stock-market investors a while to make up their minds, but when the closing bell sounded on Wednesday it was clear they didn’t like what they had heard from the Federal Reserve and its chairman Jerome Powell. See: Fed approves third large interest rate hike and signals more before year-end Central bankers also penciled …

The Dow tumbled 500 points because Jerome Powell’s Fed ‘isn’t going to blink’ Read More »

Why stock-market bears are eying June lows after S&P 500 falls back below 3,900

Goodbye, summer bounce. The S&P 500 finished Friday below a crucial chart support level that’s served as a battleground in recent years, leading technical analysts to warn of a potential test of the stock market’s June lows. “Over the last three years, the level on the [S&P 500] with the most amount of volume traded …

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Can the Fed tame inflation without further crushing the stock market? What’s next for investors.

The Federal Reserve isn’t trying to slam the stock market as it rapidly raises interest rates in its bid to slow inflation still running red hot — but investors need to be prepared for more pain and volatility because policy makers aren’t going to be cowed by a deepening selloff, investors and strategists said.“I don’t …

Can the Fed tame inflation without further crushing the stock market? What’s next for investors. Read More »

A further 27% drop in the S&P 500 could be coming if inflation hawks are right, Goldman Sachs team warns

Not exactly TGIF this Friday. What the sellside is slowly realizing is not just that the Fed is going to be aggressive in September after the latest shocking inflation figure, but that the central bank will have to keep rates higher, and for longer. The British pound GBPUSD, -0.46%, in some respects a proxy for …

A further 27% drop in the S&P 500 could be coming if inflation hawks are right, Goldman Sachs team warns Read More »

Ray Dalio says watch out for rates reaching this level, because Wall Street stocks will take a 20% hit

After that CPI shock earlier in the week, Wall Street is fielding a fresh batch of data on Thursday, with the headline retail sales number coming in stronger than expected. And a disastrous rail strike may be inverted. But there’s no cheering up billionaire investor and hedge-fund manager Ray Dalio who in our call of …

Ray Dalio says watch out for rates reaching this level, because Wall Street stocks will take a 20% hit Read More »

These five stocks in the S&P 500 lost almost half a trillion dollars in value in one day amid widespread wipeout

A decline in gasoline prices couldn’t mask the problem that spooked investors on Sept. 13: Core consumer prices resumed their rapid increase during August. Fear of the Federal Reserve’s ongoing tightening of monetary policy to fight inflation sent the Dow Jones Industrial Average DJIA, -3.94% down 1,276 points (or 3.9%) to 31,104, with all 30 …

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Why ‘quantitative tightening’ is the wild card that could sink the stock market

Quantitative monetary easing is credited for juicing stock market returns and boosting other speculative asset values by flooding markets with liquidity as the Federal Reserve snapped up trillions of dollars in bonds during both the 2008 financial crisis and the 2020 coronavirus pandemic in particular. Investors and policy makers may be underestimating what happens as …

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‘An increasing squeeze on list prices.’ 3 top economists and real estate pros on the housing markets where home prices will drop the most this year

Some markets may be more vulnerable to home price cuts than others, pros say. Getty Images Buyers in some markets are already getting — or may soon get — some relief in the form of lower home prices, pros say. Already, in the last 4 – 8 weeks, experts have noticed downward price pressure in …

‘An increasing squeeze on list prices.’ 3 top economists and real estate pros on the housing markets where home prices will drop the most this year Read More »

Fed’s Powell sparked a 1,000-point rout in the Dow. Here’s what investors should do next.

Now might be the time to consider hiding out in short-dated Treasurys or corporate bonds and other defensive parts of the stock market.On Friday, Federal Reserve Chairman Jerome Powell talked of a willingness to inflict “some pain” on households and businesses in an unusually blunt Jackson Hole speech that hinted at a 1970s-style inflation debacle, …

Fed’s Powell sparked a 1,000-point rout in the Dow. Here’s what investors should do next. Read More »