Yardeni QuickTakes (Page 17)

FOMC Day Minus One: Waiting For Nothing

May 6, 2025 3 min read paid

The federal funds rate (FFR) futures market has consistently been predicting several cuts in the FFR since March 2023 (chart). The Fed did deliver three rate cuts totaling 100bps from September 18 through December 18, 2024. Since then, Fed officials have said that they are in no hurry to lower the FFR again. Nevertheless, the FFR futures market is currently anticipating two rate cuts over the next six months and

Ed Yardeni

A Seinfeld Kinda Day: Nothing Really Happened

May 5, 2025 3 min read paid

Not much happened today in either the stock market or the bond market. Dull days are good for a change. The markets are no longer responding to every comment coming out of the White House. On Sunday, President Donald Trump called Fed Chair Jerome Powell "a total stiff." But he also said that he will not remove the Fed Chair. Today, Treasury Secretary Scott Bessent observed, "The

Ed Yardeni

DEEP DIVE: Anatomy Of A Correction

May 4, 2025 4 min read paid

This is an excerpt from Yardeni Research Morning Briefing dated Monday, April 28, 2025. The latest correction in the S&P 500 was led by a short and shallow bear market in the Magnificent-7 stocks. Trump’s Tariff Turmoil clearly drove lots of the selling pressure. However, the stock market selloff this year was also attributable to the downward rerating of the elevated valuation multiples of S&P

Ed Yardeni

ECONOMIC WEEK AHEAD: May 5–9

May 4, 2025 3 min read

US employers are confounding the naysayers–and complicating the Federal Reserve's decision this week. It's no secret that President Donald Trump wants the Federal Open Market Committee to cut interest rates at its May 6-7 meeting. Yet the economy isn't cooperating, as companies added a robust 177,000 jobs in April (chart). US average hourly earnings, meanwhile, are up 3.8% over the past

Ed Yardeni

MARKET CALL: ‘Mission Control, We Have Thrust’

May 4, 2025 4 min read paid

Today, we are lowering our subjective odds of a recession from 45% to 35% following last week's news that China and the US might be moving toward starting trade negotiations. We also remain impressed with the resilience of the US economy following Friday's employment report. However, we are not raising our 6000 year-end target for the S&P 500. Our QuickTakes dated April 24 was

Ed Yardeni

Year Of The Snake

May 2, 2025 3 min read

Stock prices soared today on a better-than-expected April US employment report and news that China is evaluating US overtures to start trade negotiations. In the Chinese zodiac, 2025 is the Year of the Snake. It began on January 29, 2025. It is shaping up to be a bad year for China's economy. We've been thinking that the Chinese are less likely to blink than President Donald

Ed Yardeni

Is The Economy On The Edge?

May 1, 2025 3 min read

The good news is that the Magnificent-7 are still magnificent. Three of them (Alphabet, Meta, and Microsoft) beat earnings expectations for Q1. We've been arguing that while AI may or may not make money for the providers of Large Language Models, the result will be more demand for cloud computing. That should be good news for at least four of the Mag-7. The bad news is that recent

Ed Yardeni

US Economy Is Tariffied

Apr 30, 2025 3 min read paid

President Donald Trump's Tariff Turmoil (TTT) is certainly upsetting global trade relations and confusing financial markets. This is all having an effect on the US economy, as evidenced by today's Q1 GDP report. The S&P 500 fell sharply in the morning when the Bureau of Labor Statistics (BLS) reported that real GDP fell 0.3% (saar) (chart). By the end of the day, the

Ed Yardeni

Dr Ed's Video Webcast 4/30/25

Apr 30, 2025 1 min read paid

Anatomy Of A Correction A dovish faction has been forming within the Federal Reserve Board, dissenting from Chief Powell’s hawkish party line. Rather than wait and see whether tariffs deliver greater blows to the economic or the inflation outlook before changing monetary-policy course, the doves claim that the economy is more vulnerable and espouse lowering the federal funds rate sooner rather than later. Dr Ed sides with Powell &

Ed Yardeni

Consumers Go Shopping To Beat Depression & Tariffs

Apr 29, 2025 3 min read paid

Stock prices rose and bond yields edged lower today on hopes that the Trump administration will soon start to deliver trade deals and the Fed might deliver cuts in the federal funds rate if the labor market shows signs of weakening. Commerce Secretary Howard Lutnick said today that the administration has its first trade deal, but it is not fully finalized. He declined to name the country involved (Freedonia?). Today&

Ed Yardeni

Bonds Are Stirred, Not Shaken

Apr 28, 2025 3 min read paid

The S&P 500 is down roughly 10% from its record high on February 19. Considering Trump's Tariff Turmoil (TTT), that's not too bad. Also recall all the angst unleashed when the 10-year US Treasury bond yield spiked from 4.00% to 4.50% right after President Donald Trump announced his "Liberation Day" reciprocal tariffs. Now it is back down to 4.20%

Ed Yardeni

ECONOMIC WEEK AHEAD: April 28–May 2

Apr 27, 2025 3 min read paid

The week ahead is jampacked with economic updates. The headliners will be Q1's GDP and March's personal income and expenditures (both Wed) as well as April's payroll employment (Fri). We're expecting relatively strong employment data, which should highlight the US economy's resilience notwithstanding Trump's Tariff Turmoil (TTT). The week's inflation indicators likely remained subdued, although tariff-related

Ed Yardeni

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