⚠️ Unexpected twists and turns in the markets! 🚨
This week we are witnessing an incredible spectacle!
Meta $META+2.3% former Facebook announced results above analysts expectations but reported a worse outlook. The company's shares are reacting to this today by falling by more than 10 %. On the other hand, there is Tesla $TSLA+0.6%, which took a beating in the results, but the share price has risen by more than 17 %. As they say, there is always something to learn in the markets, you can have years of experience, but I don't think anyone expected such a move.
Even with the interest rate cuts, things are not looking as rosy as we originally anticipated. Traders have delayed the first rate cut from September to December!
Add to that theUSGDPdata for the first quarter, the increase in 1,6 % falls short of estimates 2,5 % and compared to the previous quarter when the growth rate was 3,4 % these are not good numbers. This growth rate is the lowest since Q22022, so I'm curious to see more data and Powell's take on the whole situation!
TheS&P 500stock index has written off more than in the first few minutes 1 % It has now cut its loss to just 0,46 %.
In a few minutes we will hear results from two tech giants Alphabet $GOOGL and Microsoft $MSFT.
What results do you expect and what direction do you think the markets will take?
Still on the GDP, here's a comment that captures the dilemma the Fed has faced
"The Fed is now finding itself caught between a rock and a hard place. The growth numbers suggest monetary policy has worked its magic and the Fed's foot on the monetary brake can be eased somewhat. But the inflation figures suggest otherwise," said Stuart Cole, chief macro economist for Equiti Capital in London.
That low growth could be an argument for lowering rates. It comes from the trinity of growth, inflation, employment. I sometimes liken it to three guys at work who hate each other (you need high growth, low inflation, reasonable unemployment, and it doesn't really go together) if you reward two, the third gets dangerously pissed off. The Fed's job then is to balance their relationships so that no one gets dangerously pissed off, and the ideal result is when everyone is just a little bit pissed off.
Nice analogy, thanks, it's quite nice to understand the relationship between these indicators.
Nice and apt simile, thanks!
Like, I really didn't expect the growth at TSLA. I was quite amused at the X afterwards, as there were a lot of memes and comments about it.
I saw it too, it really makes you laugh 😂