“It has been very volatile. We have jittery markets. We just had a historically large hike from the Fed,” said Jake Jolly, senior investment strategist at BNY Mellon Investment Management. “Growth is slowing. We know that is happening but at the same time we have aggressive tightening.”
Jolly added that his team now thinks there is a higher chance of a recession than a so-called economic soft landing because of weaker economic data.
But it wasn’t all bad news Friday. Investors may also have been cheering a surprisingly strong housing report.
And big bank stocks were winners, thanks to the results of the Fed’s so-called stress tests late Thursday. The Fed gave a clean bill of health to the nation’s top financial institutions, paving the way for many large banks to buy back more stock and raise dividends.
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2022-06-24 17:41:00