Powell Praises Latest Inflation Progress, Hints At Imminent Rate Cuts, Warns He's 'Very Worried' About Unsustainable National Debt
Portfolio Pulse from Piero Cingari
Federal Reserve Chairman Jerome Powell expressed confidence in recent inflation data, hinting at potential rate cuts. He also voiced concerns about the unsustainable national debt. Market reactions included a slight weakening of the S&P 500, a rise in long-dated Treasury yields, and a fall in the iShares 20+ Year Treasury Bond ETF. Energy stocks outperformed.
July 15, 2024 | 6:04 pm
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POSITIVE IMPACT
The Energy Select Sector SPDR Fund (XLE) rose 1.9%, maintaining its outperformance during the session despite broader market caution.
Energy stocks, as tracked by XLE, continued to perform well despite mixed market reactions to Powell's comments.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) saw a slight weakening during Powell's speech, reflecting market caution despite positive inflation data.
Powell's comments on potential rate cuts and national debt created mixed sentiments, leading to a slight weakening in SPY.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) fell 1.2% as long-dated Treasury yields rose following Powell's remarks on debt sustainability.
Powell's concerns about national debt led to a rise in long-dated Treasury yields, negatively impacting TLT.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70