News / Uncategorized
[Platinum Insights] (6.12.23)
[Platinum Insights] (6.12.23)
August 22, 2023
Good morning.
US stock futures remained cautious on Monday as investors brace for the latest inflation data and the Federal Reserve’s policy meeting this week. Investors are hopeful that inflationary pressures would show further signs of easing, supporting the case for a pause in the Fed’s interest rate hikes this week and maybe even in July.
Deutsche Bank notes that historically, the Federal Reserve starts to ease policy when the willingness to lend as measured by an index in the closely watched Senior Loan Officer Opinion Survey nears zero. That measure is now deep in negative territory.
Companies are starting to feel the pinch from tighter lending conditions and costlier funding. Deutsche Bank expects an imminent default wave, with a peak in the fourth quarter of 2024. It forecasts peak default rates on U.S. loans will near an all-time high at 11.3%.
The US inflation rate is forecasted to fall 4.1% in May, the lowest since March 2021, from 4.9% in April while the core gauge may decelerate to 5.2% from 5.5%. The U.S. Treasury yield curve remains deeply inverted, meaning longer-dated borrowing costs are lower than shorter-dated ones — a gold-plated recession signal.
“I think [this week] is almost one of these big comeuppance moments because if the Fed essentially acknowledges that there’s been progress on inflation, we have a June pause and maybe even a July pause, I think it’s going to be a green light for some of those groups to finally get a bid,” Fundstrat’s Tom Lee said Friday on CNBC’s “Closing Bell.”
WTI crude futures fell to below $69 per barrel. Gold fell below $1,960 an ounce while the yield on the US 10-year Treasury note rose above 3.75%.
Have a great day!
Share this article:
More in Uncategorized:
Hedge funds and banks typically use multiple time frames for intraday trading
Hedge funds and banks typically use multiple time frames for intraday trading, as this allows them to gain a comprehensive...
![Trent Grinkmeyer in front of stock market with bull background](https://bestofusinvestors.com/uploads/2023/06/trent-e1687263019450-300x300.webp)
Trent Grinkmeyer
August 30, 2024
Nvidia Earnings Call: A Record Quarter with a Twist
Nvidia’s Q2 earnings call was a mixed bag, with the company reporting a record quarter but also revealing a drop...
![Kerry Grinkmeyer in a suit standing in front of a stock chart with a bull on it](https://bestofusinvestors.com/uploads/2023/07/kerry-300x300.webp)
Kerry Grinkmeyer
August 29, 2024
Nvidia Earnings: A Critical Moment for Big Tech
As we approach Nvidia’s earnings report, the tech world holds its breath. This isn’t just about one company’s performance; it’s...
![Trent Grinkmeyer in front of stock market with bull background](https://bestofusinvestors.com/uploads/2023/06/trent-e1687263019450-300x300.webp)
Trent Grinkmeyer
August 28, 2024
The Sleeping Giant: Why Intel is an Undervalued Stock
As the world’s largest semiconductor company, Intel (INTC) has long been a household name in the tech industry. However, despite...
![Kerry Grinkmeyer in a suit standing in front of a stock chart with a bull on it](https://bestofusinvestors.com/uploads/2023/07/kerry-300x300.webp)
Kerry Grinkmeyer
August 23, 2024
The Trillion Dollar Addiction...
The Trillion Dollar Addiction That Amazon, Google, Meta and Microsoft Will Be Selling Next Year As I discussed in my...
![Kerry Grinkmeyer in a suit standing in front of a stock chart with a bull on it](https://bestofusinvestors.com/uploads/2023/07/kerry-300x300.webp)
Kerry Grinkmeyer
August 19, 2024
What is an AI Agent? What Can It Do For You? Where Can You Get One?
As I discussed with my tribe during our recent stock talk, I’m excited to share with you the concept of...
[Platinum Insights] (6.12.23)
August 18, 2024