U.S. stock index futures fell sharply on Thursday, with growth shares taking the biggest hit, after the Federal Reserve’s biggest rate increase since 1994 to tame rising prices fanned worries of a recession. The Fed on Wednesday matched market expectations by hiking interest rates by 75 basis points. It also projected a slowing economy and rising unemployment in the coming months in the face of the worst inflation in 40 years.
“We view it as increasingly likely that a recession and higher unemployment will be necessary to tame inflation: with such a gloomy macro picture looming over the markets,” said Geir Lode, head of global equities at Federated Hermes Limited.
Following the Fed meeting, Wells Fargo said the odds of a recession now stand at more than 50%.
On the equities front, Morgan Stanley led losses among major U.S. banks with a 2% slide… Mega-cap firms [such as] Apple plunged by a similar margin.
MacDailyNews Take: Sub-$130 for Apple is back in play.
‘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%.”
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
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
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Love us some summer, but this year, November can’t get here quickly enough.
Inflation? Recession? Unemployment? Crime increase and soft DAs? Gas and food prices? Open borders? Bear market? Tampon and baby food shortages? It is ridiculous to blame the Democrats who control the White House and Congress! We know who to blame; Trump, Putin, Covid, wHITE people and racism. Not the leaders of our country.
Love the /S…
Dumassery continues, where there’s a display of pretty pictures of grassy fields and puppy dogs prancing on the inside of the blinders.
The wise, Thomas Sowell states the liberal mind embraces feel good principles, that may have good aesthetics (who likes ugly oil anyways?) even though stats, facts and figures prove & align with an otherwise reality.
Clean energy is something that every f’g human being wants, but every f’g human being is living in this capsule called reality. Covering one’s eyes doesn’t change the reality…no matter how admirable the principle looks/appears. The “progressive-left” (I always tied “progressive” with progress–something isn’t matching) is destroying simple functioning for “aesthetics”. Renewable is a misnomer. Carbon fuels are essential. Transitioning to a better means would take decades…if/when a better means is determined. There’s a serious dearth WORLD-WIDE of reasonably priced energy b/c of the naive belief wind/solar would fill the gap. The result of the dumbassery = coal is being used/mined at record levels.
Jo, would you just hit the switch…or is it a dial? I’ve never been in the Price Room at the WH…but while you are there, please turn the dial down on food prices and mortgage rates too?
This isn’t funny, strange, or just an anomaly. This is govt leaders (US) stating, not just stupid, but dangerous information. Oil companies were told their existence was in jeopardy (Jo Bide’s words during Prez Debates) and he’s denied them additional drilling rights on Fed Land, suggested requiring to pay additional taxes (so called “windfall”), while simultaneously asked to produce more and lower prices.
Imagination is a wonderful thing. Connecting it to reality is necessary. It’s not happening.
Sure thing, firstfuck
AAPL being absolutely destroyed by the market. Relentless, wholesale liquidation is ongoing by institutional investors. The feckless knob slobbing Tim Cook sycophants (including MDN) are powerless to protect the share price with their imaginary share buying.
Tim Cook’s stock buy backs are accomplishing their mission: INCINERATING BILLIONS of dollars of CASH. That’s it. Wiping out Apple’s CASH. That’s Tim Cook’s legacy.
There are no words to express my contempt to the knob slobbing Tim Cook sycophants
Dude,
MDN calls Tim Cook “Mr. Lukewarm Wallpaper Paste,” and that is when they were being kind.
Your criticism of MDN is unwarranted. MDN do not promote Cook. They can’t wait for him to retire.
Will I shed a tear when Tim Cook finally exits Apple? Take a wild guess.
Let’s face it, Steve Jobs’ track record of picking Apple CEOs was less than stellar. — SteveJack, MacDailyNews, April 2, 2019
It’s obvious that you have no idea what you’re talking about or even how buybacks work.
Another knob slobbing ignorant fcsk. Of course I know how buybacks “work”. I have first hand knowledge of that, watching the hapless and feckless Tim Cook incinerate cash with his precious buybacks. Apple’s cash balance has been depleted hundreds of billions of dollars. For a short while, the stock price increased. Those who sold, pocketed their money. The long term shareholders watched their value get incinerated. Gone. Absolutely gone. Dividends would have allowed shareholders to pocket the money. Short term holders would have gotten nothing.
Hundreds of BILLIONS of dollars. Incinerated. GONE.
All thanks to Tim Cook. As usual, the knob slobbers will support Cook to the very end. May they rot in hell forever.
FIRE Tim Cook!
Speaking of knob slobbing ignorant fcsks:
5 years ago, AAPL traded for $37.57, genius. Shares are currently up $94.28 (265.05%) from that level, genius.
That is, in large part, thanks to buybacks reducing share count, genius.
And, by “genius” above, since you’re clearly not one, I’ll state it plainly for you: I’m using “genius” as shorthand for “knob slobbing ignorant fcsk.”