U.S. stock futures rose on Monday, helped by a bounce in growth stocks, including a slight increase for Apple, after the benchmark S&P 500 hovered near a grim market milestone (bear market) at the end of last week…
U.S. stock indexes plunged further last week as dismal forecasts from Walmart Inc. and other retailers added to worries about surging inflation and its impact on consumers and economic growth.
The benchmark S&P 500 fell over 20% from its Jan. 3 record closing high at one point on Friday, pushing it to the brink of confirming a bear market. The index is now down 18.7% from its all-time closing high.
Beaten-down megacap growth stocks including Apple Inc, Microsoft Corp, Tesla Inc, Alphabet Inc, Meta Platforms, and Amazon.com gained between 0.7% and 1.3%.
The Federal Reserve’s May meeting minutes, due on Wednesday, will be closely parsed for signs on how aggressively the U.S. central bank is planning to raise interest rates. Money markets are pricing in 50-basis point rate hikes by the Fed in June and July.
MacDailyNews Take: Sub-$140 for Apple is very nice deal for those who can accumulate shares for the longer term.
‘Tis best to get a handle on inflation, if you know how, while you still can. – MacDailyNews, May 11, 2021
Earlier this year, Interactive Brokers founder Thomas Peterffy said, “Inflation is 7% — 1% or 2% [in interest rate hikes] doesn’t mean anything. If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%.”
Inflation is repudiation. — Calvin Coolidge
When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan
Stop the misguided crusade against domestic energy production and profligate federal spending and inflation will be stopped dead in its tracks. It’s not difficult. – MacDailyNews, May 11, 2022
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