Strong Start Stumbled
The month began the way January ended—with stocks climbing higher on solid earnings reports and encouraging inflation data. The markets enthusiastically greeted the Fed’s 25-basis-point hike in interest rates, relieved that the increase was in line with expectations. Spirits were further lifted by constructive comments made by Fed Chair Jerome Powell following the rate hike announcement.
The optimism did not last long, however. Stocks struggled as the direction of future monetary policy weighed on investors throughout the month.
Uncertainty with Interest Rates
Despite an initial upbeat assessment by Powell at the post-meeting press conference, a strong employment report fanned fears that... |