Fed-Linked Swaps Show 25 Basis Point Hike Fully Priced In By July Meeting
Portfolio Pulse from Happy Mohamed
Fed-linked swaps indicate a 25 basis point rate hike fully priced in by the July meeting, according to Reuters. This may impact the SPY ETF.
June 02, 2023 | 4:31 pm
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NEGATIVE IMPACT
The SPY ETF may be impacted by the 25 basis point rate hike fully priced in by the July meeting, as indicated by Fed-linked swaps.
A rate hike typically leads to higher borrowing costs, which can negatively impact stock prices. As SPY is an ETF that tracks the S&P 500, it may be affected by the anticipated rate hike. The relevance is 80 as SPY is mentioned in the article, and the importance is 70 as rate hikes can have significant effects on stock prices. The confidence is 85 as the information is based on Fed-linked swaps, which are a reliable indicator.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80