Posted 2/24/2024, 10:00:00 AM
Stocks Face Renewed Pressure as Inflation Resurgence Threatens More Aggressive Fed Rate Hikes
- The US economy still on track for a recession due to resurgent inflation that may force the Fed to keep rates higher for longer, hurting stocks
- Technical indicators like poor market breadth, high volatility, and declining tax revenues signal a stock market decline
- Investors are pricing in delayed Fed rate cuts even as inflation shows signs of heating up again
- JPMorgan strategist warns high risk positioning and investor euphoria contrasts with potential for higher rates for longer
- Outcome depends on whether inflation sustains a comeback which would likely prompt Fed hawkishness and trouble for stocks