January’s CPI data came out higher than expected Tuesday, sparking a major market sell-off. SEI Chief Investment Officer Jim Smigiel joins Yahoo Finance Live to discuss what prompted the sharp downturn in stocks.
Smigiel says the sell-off represents “the market pricing out perfection”. Investors had previously hoped for the Federal Reserve to cut interest rates by March amid stabilizing economic data. However, Smigiel notes the hot CPI report showed “this is not going to be a linear path, this is going to be a bumpy road” to the Fed’s rate cuts.
Smigiel notes markets were “definitely overbought”, but this doesn’t necessarily signal “the start of a bad market”. Rather, it indicates an “entrenchment” in overbought sectors.
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source
AMC
FED won't cut until mid 2025. Get over it people. The economy is resilient, 2 years of tighetening had been to kill off inflation and it will take a 3rd year with all of 2024. The FED will hold high as long absolutely possible.
Analysts are quick to adjust their story… Soon will be saying that a bit of extra inflation is actually not too bad and not a problem for stocks to reach 20% more, before we again upgrade for the sake of the big guys we are working for.
Overreaction. Inflation trend still going down.
Overbought? Everything but tech is back if not lower then start of nov clown.
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I’m a bear but I bet it keeps going higher.
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