Jobs report takeaways 💼
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The Fed's labor market outlook 🗣️
Yield curve inversion 🙃
🎥 @RunnymedeCap weighs in on the most pressing themes in markets with @NPetallides:
🖥️ #Trading360 https://t.co/HbHZGmmihA
- The bond market is flashing a possible warning sign of a recession ahead
- 5 year and 30 year bond yields inverted for the first time since 2006 on Monday
- On Thursday, the more closely watched 2-year and 10-year inverted
- The Federal Reserve is hiking rates into slowing growth
- The stock market is currently pricing in 8 rate hikes
- The economy is slowing
- US Real GDP quarter-over-quarter was 7% in Q4 and is forecast to be near 0 in 1Q22
- We are lapping $1.3T in Federal spending last year, which included the $1400 stimulus checks
- Full-year GDP could decrease as much as 4-5%, a result of reduced government spending
- Corporate profits could face headwinds
- The labor market is very tight and company management teams are talking about wage increases putting pressure on margins
- Geopolitical uncertainty remains high
- Russia's invasion of Ukraine could negatively impact GDP growth in Europe
Do you think risks are rising or do current fears signal an interim market bottom?