Daily Alert – Tuesday 3rd May 2022: Fed in the spotlight

Mark NugentDaily Alert, May 2022

Daily Alert – Tuesday 3rd May 2022: Fed in the spotlight

Good morning.

Last week was all about mixed corporate financial results from the big tech companies in the US. The boost most of these companies received from Covid-related shutdowns is unravelling.

In addition, we saw a GDP miss in the US. In fact, we saw contraction, which freaked out the markets for a few hours before it was forgotten.

This week is all about the Fed, and Wednesday’s rate-setting meeting. There has been real downwards pressure on equities for most of this year as the Fed has become increasingly aggressive in terms of combating inflation with projections of ever more frequent and greater interest rate hikes, while promising not to crush the economy. That’s a thin line to tread. We will see if this narrative is intact at the end of the week.

As always, I go through my trading themes for the week in the video.

We’ll be back tomorrow.

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