Stocks ( ^GSPC, ^IXIC, ^DJI) moved higher after a stronger than expected ISM services report and any exemption from comments from commercial secretary Howard Lutnick with regard to rates. However, the volatility remains a concern, because the S&P 500 is falling.
Metlife Investment Management Chief Market Strategist Drew Matus and Ned Davis Research Chief Global Investment Strategist Tim Hayes Join Catalysts Hosts Madison Mills and Seana Smith to discuss the latest developments in the economy.
“If we look at the in collaboration with that just came out, we see that growth is OK and that inflation is a bit sticky, what is a kind of what we all knew would be the case,” says Matus.
“The Wildcard is the tariff situation and what impact it has,” he adds. “And I think the biggest impact of rates is actually not inflation; it can be growth.”
Regarding market movements and pessimistic consumer sentiment, Hayes notes: “Most shares are still above their 200-day progressive averages worldwide, and some markets such as Europe are very close to new highlights, so I think the sentiment is really out of line with the reality of what our indicators tell us.”
He adds: “This kind of pessimism is much larger than we usually see in a correction … I think the sentiment will come back to what the basic principles tell us.”
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This post is written by Josh Lynch
