The financial world is closely watching Washington today as the markets remain flat ahead of the highly anticipated FED meeting. Expectations are that the FED will announce another rate hike of 0.25%, but investors will also be looking for guidance on future plans. Will the FED signal a wait-and-see approach or continue to adopt a hawkish stance, citing inflation as a persistent issue?
Adding to the market’s uncertainty, Janet Yellen of the Treasury Department has warned that the US will run out of money by June 1, following JPMorgan’s bailout of First Republic Bank. Almost all the prominent Wall Street experts, except for JPMorgan CEO Jamie Dimon, are predicting more bank failures to come. This level of uncertainty is not favored by the stock market and until there is more certainty in the financial system, volatility is expected to continue.
Today will also see the release of earnings reports from several companies. Before the bell, Pfizer, Molson Coors, and Uber will release their reports, while AMD, Starbucks, and Ford will do so after the bell. You can see the list of earnings due today on Yahoo’s earnings calendar. The market will be closely watching these reports for indications of strength that could help pull the market out of its current downturn until financial uncertainty settles.
Investors are advised to brace themselves for more turbulence and to keep their focus on long-term investment strategies, which typically pay off in the end.
Please reach out to info@fiscalinvestor.com with any concerns you may have. We look forward to hearing from you.