Is bad news, good news? Chances of a Fed rate cut soar. Did businesses push the “pause button” in May?
The S&P 500 rose to another weekly record helped by positive economic reports and a lower than expected U.S. tariff on Chinese goods. However, relative good news is not necessarily good news, and trade tensions will likely remain a cloud over the markets in the months ahead.
Despite the strong economic reports, inflation eased a bit in August surprising most analysts and the Fed. Will the FOMC feel a need to raise interest rates as much as expected?
Fears won the battle over facts in the latest week. After closing out August at a record high, the S&P 500 fell nearly 1% in the holiday-shortened week.