Has the Nasdaq Finally Caught Up With Reality?
The beginning of earnings season is confirmation that investors really do need to be worried about rising cost pressures.
Not a great kickoff to 2022.
Source: Bloomberg
In the past week, we’ve seen remarkable top-down shifts in the Nasdaq going into the close, day after day. Is the market finally catching up to reality? Lisa Abramowicz and John Authers sat down to discuss the evolving situation in detail on this week’s Risks & Rewards. Here’s a lightly edited version of their conversation.
Lisa Abramowicz: This week was tumultuous. Looking at the Nasdaq in particular —the selloff, the correction — it's worth asking: Is this the week that stock markets finally woke up to the reality that bond markets were pricing in that the Federal Reserve was going to raise rates three to four times this year and start quantitative tightening?