Short term inflation is not good for investors. The Fed, EU and UK central banks were clear last week, They are not considering lowering rates, thus the S&P has continued to extend its loss under the balance range down another 2.99% last week from Monday’s open to Friday’s close.
Investors faced fresh headwinds last week as short-term inflation proved persistent. The world’s major central banks left no room for doubt: interest-rate cuts are off the table for now. With higher rates lingering longer than hoped, the S&P 500 extended its slide, breaking below its recent balance range (hypotenuse fakeout and the triangle base broken). SPX finished the week down 2.99% — from Monday’s open all the way to Friday’s close. The chart shows a -5.41% MTD.
In summary, we market participants now know that the Fed raised the inflation forecast from 2.4% up to 2.7%.
OIL UPDATE:
The chart on X shows that Higher Oil usually translate into stronger USD and stronger USD does not help US exports. I woke up reading, that the Strait of Hormuz remains open…
DUBAI, March 22 (Reuters) – The Strait of Hormuz remains open to all shipping except vessels linked to “Iran’s enemies”, Iranian media reports published on Sunday quoted Iran’s representative to the U.N. maritime agency as saying.
Ali Mousavi’s comments came from an interview published on Friday by Chinese news agency Xinhua, before U.S. President Donald Trump’s threat to target Iranian power plants if the strait was not “fully open” within 48 hours.
(Reporting by Dubai Newsroom; Editing by William Mallard and Alexander Smith)
The tensions will not easy fast.
The other key picture of last week and was the FED stands about Unemployment, I am just sharing the chart. Powell made it very clear they’ll take it meeting by meeting, they will be reactive, to the market once again will tell them what they want then to do.
On positive side:
- NVDA and AI as great as expected.
- SEC & NASDAQ – We will be trading tokens and 24/7
METALS & MACRO UPDATE
Gold trading at 4 month low. Copper at 3 month low
Gold down for 9th straight session after worst week in 43 years
Silver, platinum lowest since mid-December
Iran vows to hit Gulf infrastructure if US strikes power grid
Market bets on Fed rate hike this year surge – the opposite what some bulls wanted.
Regards,
Mario
