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S&P 500 It opened on Tuesday after the Bureau of Labor Statistics confirmed that a key wage inflation measure was lower than expected in the final quarter of 2022.
Avoid excessive bullishness in stocks
Employment Cost IndexAn indicator closely followed by the central bank rose 1.0% year-on-year in the fourth quarter and a 1.1% gain was expected, down from 1.2% in the previous quarter.
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However, Cetera’s Gene Goldman recommends that investors avoid getting too excited stock market. talking with CNBC’s Brian Sullivan This morning he said:
Why shouldn’t we be more positive? [Because] Valuations are slightly higher relative to current interest rate levels and stocks continue to struggle above the 200-day moving average.
For the year, the benchmark index is currently up around 6.0%.
Recession is not priced in
Wage inflation data today indicated the weakest quarterly gain in a year. But Goldman remains cautious due to earnings weakness and fears Depression US stocks are not priced.
A Gallup poll recently found that 79% of Americans say a recession is coming. And the data is there. Inverted Yield Curves, PMI, Retail Sales. It is not reflected yet. Revenue should grow by another 5% to 10%. So, we are worried for a while.
Still, he doesn’t expect the S&P 500 to sink lower in October again. Instead, Goldman says meaningful support could be found around the 3,800 level.
is the US Federal Reserve expected to declare its 8Th Interest rates continued to rise this Thursday.
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