Like one-two combinations from Ali, the US economy continue to deliver stiff left jabs with the employment report and then damaging right crosses with the CPI. Interest rate markets are reeling, having retreated to expecting the first full easing in September – with ten-year notes breaking above 4.5%. Calls for rate hikes are no longer out of consensus. Jaime Dimon’s annual letter warned rates could reach “8% or even higher” due to government spending and persistent inflation. Meanwhile, the S&P500 has erased just 100 points from its record high in late March, as the ability to raise prices due to an environment of strong growth promises strong profits ahead – and more hiring and price hikes.
EU04-14-2024
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