In the latest Market Signals podcast, LPL Research’s Chief Equity Strategist Jeffrey Buchbinder and Chief Fixed Income Strategist Lawrence Gillum highlight continued resilience from stocks and bonds in the face of escalation in the Middle East, recap last week’s Fed meeting, and highlight the divergence in the two major Chinese equity markets.
Equities hardly moved last week while bonds appreciated dovish Fed commentary late in the week, leaving stocks near record highs and the bond market holding solid year-to-date gains.
Next the strategists recapped the Fed meeting, noting that it largely went as expected with minimal market impact. While President Trump called out Fed Chair Powell for not lowering interest rates and, effectively, costing the federal government trillions in interest payments, the real costs are likely closer to $125 billion.
The strategists also noted that the bond market is seemingly looking through both tariff inflation and a potential spike in oil prices from the escalating Middle East conflict, with rates falling recently despite these ongoing concerns.
The strategists then closed with a preview of the week ahead, including Fed speakers, Powell’s congressional testimony, some May-quarter earnings reports, and the Fed’s preferred inflation metric, the PCE deflator.
Check the background of investment professionals associated with this site on FINRA’s BrokerCheck
Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA / SIPC.
The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: OR, WA, CA, HI and CO.