The Fed may stutter-step its tightening cycle for the first time in 3 decades, and stocks will lose the tug of war with rates, DataTrek says

Wed, 03/08/2023 - 09:34

Traders in the NYSE — Traders and financial professionals work ahead of the closing bell on the floor on the New York Stock Exchange (NYSE), October 26, 2018 in New York City. The Dow Jones Industrial average was down nearly another 300 points at the close on Friday. Disappointing earnings numbers from key technology companies, including Amazon and Alphabet, were driving forces for the markets' slide.
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Jerome Powell reiterated a hawkish stance and the potential for higher-for-longer rates.
Markets are now pricing in a larger likelihood of a half-point rate hike in March.
The stock market looks overvalued amid uncertainty on rates, according to DataTrek Research.

Fed Chairman Jerome Powell opened the door to ramping up the pace of policy tightening again, and stocks will be forced to recalibrate, according to DataTrek Research.