Dovish Fed Inspires Global Markets

Main content

  • Good domestic economic data on top of more accommodative Fed policy served as a double-whammy boost for markets, driving a risk asset rebound after a dismal January.
  • Given the global economic weakness, the Fed seems to believe there is greater risk to being early in normalizing rates than there is to being late.
  • With nearly half of S&P 500 revenue derived from overseas, weakness in the global economy is showing up in U.S. corporate earnings and is likely to result in a fourth consecutive quarter of negative growth.

Footer content