Goldman Sachs Pushes Back Fed Rate Cut Timeline After Powell's 'Strong Signal'
Portfolio Pulse from Piero Cingari
Goldman Sachs has revised its forecast for the first Federal Reserve interest rate cut from March to May following the January FOMC meeting, where Fed Chair Jerome Powell indicated a more hawkish stance on monetary policy. This shift in expectations led to significant losses on Wall Street, with the SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust (QQQ) experiencing their worst trading days since September and October 2023, respectively.
February 01, 2024 | 3:53 pm
News sentiment analysis
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NEGATIVE IMPACT
The Invesco QQQ Trust (QQQ) experienced its worst session since late October 2023, underperforming after Powell's hawkish press conference and the revised rate cut expectations.
QQQ's sharp decline is a reaction to the hawkish signals from the Fed and the delay in expected rate cuts to May, as indicated by Goldman Sachs. This news negatively affects the tech-heavy index, suggesting short-term bearish pressure on QQQ.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) marked its worst trading day since September 2023 following Powell's hawkish remarks and Goldman Sachs' adjusted rate cut forecast.
The SPY's significant drop is directly linked to the market's reaction to Powell's hawkish comments and the subsequent adjustment in the timeline for expected rate cuts by Goldman Sachs. This news impacts investor sentiment and could lead to short-term volatility in SPY's price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90