YOLO Stock Bulls Say Wake Me When Fed Tightening Starts to Bite
- S&P 500 ends week up in face of strong labor-market report
- Wave of Fed officials warned market more tightening is coming
Photographer: Michael M. Santiago/Getty Images
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Never ones for nuance, equity traders have apparently gotten bored waiting for higher interest rates to make their presence known in the economy.
How else to explain the last few weeks in markets, a period in which increasingly thorny warnings from the Federal Reserve have done nothing to limit the spirit of bulls bent on celebrating buoyant earnings and economic reports? While the S&P 500’s performance over the last five days was virtually flat compared with the previous two weeks, neither did the market give those gains back -- a notable achievement given Friday’s roaring jobs report that stoked bets on faster tightening.