The Stock Market’s Debt Problem Is Hiding in Plain Sight

The recent rise in interest rates is causing credit to become more expensive and harder to obtain, which will have significant implications for various sectors of the economy such as real estate, automobiles, finance/banks, and venture capital/tech companies. Rising rates also affect the fair value of assets, presenting both opportunities and risks for investors.

The stock market is rising despite bad news, as interest rates lower and stabilizing rates are seen as positive signs.

Stocks are giving back their gains as bond yields rise due to fears that the Federal Reserve will keep interest rates high for a longer period of time.

Stocks gave up gains after Fed Chair Jerome Powell stated that the central bank is prepared to raise rates further, causing investors to adopt a dimmer interpretation of his remarks.

Stocks rebounded after Fed Chair Jerome Powell indicated that the central bank is prepared to raise interest rates further, providing a cautious but ultimately optimistic outlook on the economy.

Stocks were relatively unchanged as investors awaited new economic indicators and data on the health of the US economy, including consumer confidence, jobs openings, and inflation reports, which could impact expectations for future interest-rate rises from the Federal Reserve.

Equity markets are higher as investors consider macro data, with Wall Street experiencing a rally fueled by optimism about interest rates and job openings.

Stocks closed higher on Wall Street as economic reports indicated a cooling economy, potentially leading to a pause in interest rate hikes by the Federal Reserve.

Technology stocks appear to be defying the impact of higher interest rates and are continuing to perform strongly.

The Federal Reserve is expected to hold interest rates steady this month, but inflation could still lead to additional rate increases.

Stock investors have been reacting positively to "bad economic news" as it may imply a slowdown in the economy and a potential halt to interest rate hikes by the Federal Reserve, however, for this trend to change, economic data would have to be much worse than it is currently.

The author argues against the common belief that rising interest rates and a rising dollar will negatively impact the stock market, citing historical evidence that contradicts this perspective and emphasizes the importance of analyzing market reality rather than personal beliefs. The author presents a bullish outlook for the market, with a potential rally towards the 4800SPX region, but also acknowledges the possibility of a corrective pullback.

Major companies are becoming more cautious about borrowing in a higher interest rate environment, leading to a decrease in corporate bond issuances.

The stock market has been stable recently, but it is expected to experience increased volatility in the future.

The US economy is facing a looming recession, with weakness in certain sectors, but investors should not expect a significant number of interest-rate cuts next year, according to Liz Ann Sonders, the chief investment strategist at Charles Schwab. She points out that leading indicators have severely deteriorated, indicating trouble ahead, and predicts a full-blown recession as the most likely outcome. Despite this, the stock market has been defying rate increases and performing well.

The Wall Street Journal reports a notable shift in the stance of Federal Reserve officials regarding interest rates, with some officials now seeing risks as more balanced due to easing inflation and a less overheated labor market, which could impact the timing of future rate hikes. In other news, consumer credit growth slows in July, China and Japan reduce holdings of U.S. Treasury securities to record lows, and Russia's annual inflation rate reached 5.2% in August 2023.

A period of higher interest rates won't derail the bull market in stocks, as historical analysis shows that the stock market performs well during elevated interest rate periods, with slightly lower but less volatile returns compared to lower interest rate periods, according to BMO's chief investment strategist Brian Belski.

Traders and investors are betting that the Federal Reserve will hold interest rates steady at its September meeting, indicating a shift in the market's interpretation of good economic news, as it suggests the Fed may be close to pausing its rate hike cycle despite inflation being above target levels and potential headwinds in the economy.

Higher interest rates next year will negatively impact a significant number of corporations when they need to refinance, according to Mohamed El-Erian, the chief economic adviser at Allianz SE.

The stock market is currently stagnant and the key question is when the Federal Reserve will start cutting interest rates, as the market struggles when the Fed tightens monetary policy.

Higher interest rates have historically correlated with lower market returns, but new research from BMO Capital Markets suggests that the impact of higher rates on the S&P 500 is overblown, as returns tend to be slightly below average but with lower volatility; BMO recommends buying 28 stocks with low leverage and high free cash flow to benefit from this strategy.

US stocks remain steady as investors anticipate the Federal Reserve's interest rate decision and closely watch negotiations in the US auto workers strike.

The Federal Reserve is expected to hold off on raising interest rates, but consumers are still feeling the impact of previous hikes, with credit card rates topping 20%, mortgage rates above 7%, and auto loan rates exceeding 7%.

The Federal Reserve is expected to keep interest rates unchanged at its meeting this week, but investors will be paying close attention to any indications of future rate increases as the central bank continues its fight against inflation.

The Federal Reserve's interest-rate decision will impact stock and bond investors, with a hawkish stance being unfavorable and a dovish stance being favorable.

The Federal Reserve will continue raising interest rates until inflation decreases, even if it means more people losing their jobs, according to CNBC's Jim Cramer.

U.S. stocks slumped after the Federal Reserve indicated that it may not cut interest rates next year as much as initially expected, causing concerns among investors on Wall Street.

The Federal Reserve's plans for prolonged elevated interest rates may continue to put pressure on stocks and bonds, although some investors doubt that the central bank will follow through with its projections.

The Federal Reserve has indicated that interest rates will remain "higher for longer," potentially for at least three more years, in order to sustain economic growth and combat inflation.

U.S. stocks are expected to open lower and the dollar is soaring after the Federal Reserve indicated that interest rates will remain higher for a longer period, while the Bank of England faces a tough rate decision and the Swiss National Bank has paused its rate-hiking cycle.

Central banks, including the US Federal Reserve, European Central Bank, and Bank of England, have pledged to maintain higher interest rates for an extended period to combat inflation and achieve global economic stability, despite concerns about the strength of the Chinese economy and geopolitical tensions.

The stock market showed a surprising reaction to the Fed's decision to keep interest rates unchanged, with expectations of a pause in rate hikes leading to selling in the market and a potential change in mood for investors.

Stocks tumbled after the Federal Reserve announced that interest rates will remain higher for longer; however, some analysts believe that the market's reaction was overblown and that higher rates and economic growth could actually lead to higher stock valuations.