Is The Fed propping up the stock market?
Jerome Powell probably isn’t playing at politics, but that won’t convince the skeptics that the Fed isn’t propping up the stock market
it’s hard to overstate the usefulness of an independent central bank.
In the quarter century since people started talking about a Greenspan put, even more of Americans’ wealth is packed in pension funds, and indexes now ensure that everyone knows immediately when their holdings lose money.
Hence any market downturn would incur voters’ displeasure. That, the cynical argument goes, prompts the Fed to bolster the stock market.
John Authers Bloomberg 8 maj 2024 at 07:14 CEST
Kommentar RE: Motsvarande misstanke i Sverige är att Riksbanken har som underförstått, och av många gillat mål, att se till att vi får stigande bostadspriser.
Stock Rally Runs Out of Steam
The recent rally brought the S&P 500 about 1% away from its all-time high
Still, the bounce off April’s lows has been a narrow one
“That’s not the end of the world,” he said. “But it would be a lot more positive if this rally can broaden out over the coming days and weeks — given that the market is a lot more expensive than it was at this time last year.”
A surge in the S&P 500 since the end of October through April had pushed the equity gauge to trade at 20 times projected profits, some 11% above its 10-year average.
Traders are now looking for reasons to justify the high valuations and want to see bigger growth ahead.
Rita Nazareth Bloomberg Updated on 8 maj 2024 at 19:06 CEST
https://www.bloomberg.com/news/articles/2024-05-07/stock-market-today-dow-s-p-live-updates
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