The Dow industrials, S&P 500 and Nasdaq Composite all ended slightly higher Wednesday even though the Federal Reserve left interest rates unchanged and hinted at possible "stagflation" risks to the U.S. economy. The$Dow Jones Industrial Average (.DJI.US)$gained 284.97 points (0.7%), while the$S&P 500 Index (.SPX.US)$added 24.37 ticks (0.4%) to 5,631.28. The$Nasdaq Composite Index (.IXIC.US)$rose the least in...
bullbearnme
:
If the Federal Reservedoes not cutinterest rates at its current meeting, the U.S. stock market could face several potential impacts: Negative Effects on the Stock Market:Higher Borrowing Costs for Companies: Companies will continue to face elevated borrowing costs, which can reduce profit margins. This may lead to lower corporate earnings, potentially depressing stock prices, especially in capital-intensive sectors like real estate, utilities, and manufacturing. Slower Economic Growth: High interest rates can dampen consumer spending and business investment, slowing economic growth. This typically reduces overall corporate revenues, leading to lower stock valuations. Market Volatility and Sell-Offs: Investors who were expecting a rate cut may adjust their portfolios, potentially leading to a market correction. Growth-oriented and tech stocks, which are particularly sensitive to interest rates, might experience sharper declines. Stronger U.S. Dollar: Higher interest rates tend to strengthen the U.S. dollar, which can hurt multinational companies by reducing the value of overseas earnings when converted back to dollars. This can weigh on the stock prices of companies with significant international exposure. Positive Effects (Possible but Limited):Support for Financial Sector: Banks and financial institutions might benefit from higher interest rates as they can charge more for loans. This can boost the profitability of banks, potentially supporting their stock prices. Reduced Inflation Pressures: Steady rates could help keep inflation in check, preserving purchasing power and potentially boosting consumer confidence over the long term. Long-Term Market Stability: A cautious Fed approach might reduce the risk of financial instability, supporting long-term market confidence. Historical Context and Market Sentiment:TheS&P 500andNASDAQhave historically reacted negatively to prolonged periods of high interest rates due to compressed profit margins and reduced risk appetite.
$Nasdaq Composite Index (.IXIC.US)$This is interesting, I'm listening to an analyst his last name is Gundlach, any saying that the interest on the debt is horrific it's going to be 4 billion dollars a day shortly and will be about 5 billion a day by the end of the year. and then I remember hearing president Trump say multiple times were collecting billions of dollars a day from the tariffs I think he said $5 billion a day is what I recall him saying as recently as the last cabinet meeting....
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Himzzi
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Trump is not driven by data but by stories and emotions. He has a theory, and is hell bent to prove it right despite what the data might be showing.
10baggerbamm
OP74730960
:
it's a tale of two stories because my initial inclination was President Trump is saying we're taking in 5 billion dollars a day and I hear this analyst and he's very good and he's very very sharp person say that The debt service is approaching 4 billion and will be 5 billion a day by the end of this year well that's a wash.. if you think about that that would mean according to president Trump we're taking in everything on a daily basis that needs to be taken in to pay 100% of the interest and not use any taxpayer monies..everybody is heard it's not a revenue problem it's a spending problem meaning that there's plenty of GDP there's plenty of taxes collected it's just that the government spends too much. so if the money being collected by the tariff pays 100% of The debt service there's a lot of money coming in every week from paychecks that are collected by the government your federal taxes that are withheld and then April 15th what you owe the lump sum that's extra cash that the government can pay down the debt significantly with or build a golden dome or do something productive for the economy. but if the actual numbers are only 200 million to 300 million then the tariffs really don't solve any problem at all they're creating more of a problem and that's an increase in prices which reduces the spending of consumers because consumers only have a fixed income at the end of the month to spend and if goods and services go up because of the tariffs they buy less well that's a slowdown in GDP that puts you into a recession.. so that's why hmmm. either the money coming in is a real number 5 billion a day which president Trump do a search he said it you can hear him or it's a fictional number..
fisher931
10baggerbamm
OP
:
Tariffs are merely a way to consume the credit of the US dollar to maintain short-term finances, not a solution to the debt.
10baggerbamm
OPfisher931
:
you're completely wrong if the debt service is 5 billion a day and there's no tariffs that debt service comes from the money is paid by taxpayers number one and from the sale of treasuries number two with tariffs if it is 5 billion dollars a day coming in that covers the debt service which leaves all the taxpayer money to be used for projects which the government was doing anyways military defense which the government was doing anyways leaves a huge surplus which lets them retire debt so you're completely wrong
The Federal Open Market Committee kept the target fed funds rate steady at its current level of at of 4.25% to 4.5%, citing rising risks of unemployment and accelerating inflation. "Uncertainty about the economic outlook has increased further," policymakers said in a statement released at the end of its two-day meeting Wednesday afternoon. "The Committee is attentive to the risks to both sides of its dual mandate a...
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Companies involved in the creation, trade, and services of digital forms of money.Displayed third-party logos, brands, or trademark images on screens or web pages are only for identification purposes and remain the property of their respective owners.Displayed third-party logos, brands, or trademark images on screens or web pages are only for identification purposes and remain the property of their respective owners. Information is provided by Futu and is a non-exhaustive list of all thematic stocks for reference purposes only.
This section presents the top 5 stocks in U.S. Crypto Concept Stocks, ranked from highest to lowest based on real-time market data. Companies involved in the creation, trade, and services of digital forms of money.Displayed third-party logos, brands, or trademark images on screens or web pages are only for identification purposes and remain the property of their respective owners.Displayed third-party logos, brands, or trademark images on screens or web pages are only for identification purposes and remain the property of their respective owners. Information is provided by Futu and is a non-exhaustive list of all thematic stocks for reference purposes only.
This section presents the top 5 stocks in U.S. Crypto Concept Stocks, ranked from highest to lowest based on real-time market data.
bullbearnme : If the Federal Reservedoes not cutinterest rates at its current meeting, the U.S. stock market could face several potential impacts:
Negative Effects on the Stock Market:Higher Borrowing Costs for Companies:
Companies will continue to face elevated borrowing costs, which can reduce profit margins.
This may lead to lower corporate earnings, potentially depressing stock prices, especially in capital-intensive sectors like real estate, utilities, and manufacturing.
Slower Economic Growth:
High interest rates can dampen consumer spending and business investment, slowing economic growth.
This typically reduces overall corporate revenues, leading to lower stock valuations.
Market Volatility and Sell-Offs:
Investors who were expecting a rate cut may adjust their portfolios, potentially leading to a market correction.
Growth-oriented and tech stocks, which are particularly sensitive to interest rates, might experience sharper declines.
Stronger U.S. Dollar:
Higher interest rates tend to strengthen the U.S. dollar, which can hurt multinational companies by reducing the value of overseas earnings when converted back to dollars.
This can weigh on the stock prices of companies with significant international exposure.
Positive Effects (Possible but Limited):Support for Financial Sector:
Banks and financial institutions might benefit from higher interest rates as they can charge more for loans.
This can boost the profitability of banks, potentially supporting their stock prices.
Reduced Inflation Pressures:
Steady rates could help keep inflation in check, preserving purchasing power and potentially boosting consumer confidence over the long term.
Long-Term Market Stability:
A cautious Fed approach might reduce the risk of financial instability, supporting long-term market confidence.
Historical Context and Market Sentiment:TheS&P 500andNASDAQhave historically reacted negatively to prolonged periods of high interest rates due to compressed profit margins and reduced risk appetite.
affable Blobfish_403 : What does a strong rally in the closing period mean? Who has such great power?