This week in Bidenomics: Thanks for nothing, man
Published On Jan 11, 2025, 10:00 AM
This week in Bidenomics highlights a robust job growth in December with an addition of 265,000 jobs, exceeding expectations and indicating a strong labor market. However, rather than a positive response, financial markets reacted negatively, fearing that the economy may be overheating, which could lead to the Federal Reserve halting its rate cuts. Consumer confidence is declining, with increased worries about inflation, possibly linked to upcoming tariffs proposed by former President Trump. Higher borrowing costs and consumer loans are expected due to the rise in Treasury bond yields, complicating the investing landscape for stocks and influence on household financial conditions.
Stock Forecasts
SPY
Negative
Given the concerns about inflation and potential future rate hikes, coupled with the overall negative market sentiment toward long-term economic stability, investors might want to exercise caution. The rising Treasury bond rates suggest a tightening financial environment which typically pressurizes equities, particularly those with higher valuations.
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