{"id":59006,"date":"2022-02-11T20:30:36","date_gmt":"2022-02-12T04:30:36","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=59006"},"modified":"2022-02-12T13:50:00","modified_gmt":"2022-02-12T21:50:00","slug":"tensions-over-rates-and-borders-lock-in-churn-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/02\/11\/tensions-over-rates-and-borders-lock-in-churn-the-market-breadth\/","title":{"rendered":"Tensions Over Rates and Borders Lock In the Churn – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong>:<\/h2>\n\n\n\n

At mid-week, the stock market looked poised to put on a defiant display of buying power. However, multiple negative headlines proved too much to bear. Hawkish Fed-speak greased the skids on Thursday. Another hot inflation report and escalating tensions at the Ukrainian border sealed the deal for angst to rule the day. The stock market spent another week essentially locked into what I have called the “churn zone.”<\/a> <\/p>\n\n\n\n

All things considered, I am actually surprised the stock market did not fare a lot worse from all these tensions. The action has the feel of a market that “wants” to go higher. Accordingly, I assume that the stock market is well underway in a process of first absorbing and then pricing in the worst case scenarios.<\/p>\n\n\n\n

Federal Reserve board member James Bullard made his face the symbol of “worst case” scenarios for monetary policy. Bullard is typically on the hawkish end of policy. He really ramped up the rhetoric on Thursday calling for a “supersized” rate hike process. Bullard was so hawkish that rumor-mongers were able to spook the market on Friday about a surprise, emergency rate hike<\/a> in response to the lates inflation numbers. Bullard’s commentary essentially tested the boundaries of believability as far as traditional Fed behavior goes. <\/p>\n\n\n\n

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