Valuation-Led Rally Could Sputter This Week

Aug 7, 2022 1 min read
Valuation-Led Rally Could Sputter This Week

The bull runs in the bond market since June 14 and the stock market since June 16 could stall this week. Both markets have probably discounted that July's CPI report (on Wednesday) should be moderated by falling gasoline prices and durable goods prices, while rent inflation could be more troublesome.

The markets may not have fully discounted the likelihood that July's strong employment report (reported this past Friday) increases the odds that the next hike in the federal funds rate is likely to be 75bps rather than 50bps. In recent days, several Fed officials have  expressed hawkish opinions.

Great! Next, complete checkout for full access to Yardeni QuickTakes.
Welcome back! You've successfully signed in.
You've successfully subscribed to Yardeni QuickTakes.
Success! Your account is fully activated, you now have access to all content.
Success! Your billing info has been updated.
Your billing was not updated.