Do not anticipate Fed pivot ‘anytime quickly’ – Hightower’s Stephanie Hyperlink (SP500)

Funding strategist Stephanie Hyperlink stated Monday that the Federal Reserve will possible proceed its hawkish coverage into the foreseeable future, because it ignores potential ache within the inventory market to deal with getting inflation underneath management.

“The Fed isn’t going to pivot anytime quickly,” the chief funding strategist at Hightower Advisors advised CNBC.

Hyperlink added that Fed Chair Jerome Powell possible will not take his cues from the monetary markets. As an alternative, she expects him to focus on incoming inflation knowledge, which has remained elevated in current readings.

“I do not assume they are going to have a look at the markets. They’re simply going to have a look at the info and we’ll must see, within the subsequent couple of months, what that appears like,” she stated. “Sadly, [inflation is] going to be greater for longer, in order that’s why charges must be greater for longer.”

The S&P 500 (SP500) (NYSEARCA:SPY) spiked 3% final Wednesday after Powell gave a speech that included indicators that the Fed may start slowing its aggressive price hikes as early because the upcoming coverage assembly, scheduled for the center of this month.

Nevertheless, the benchmark fairness common hasn’t made extra progress since, ending fractionally decrease on Thursday and Friday. Actually, Wednesday’s rally was the S&P 500’s solely greater end previously six periods.

On a extra granular stage, Hyperlink was requested about potential catalysts for particular person shares arising within the close to time period. She famous a healthcare occasion arising for GE (GE), in addition to an investor day for Lowe’s (LOW).

By way of upcoming earnings, Hyperlink spotlighted releases due out within the subsequent few days from Broadcom (AVGO) and Costco (COST). AVGO will observe outcomes from Marvell (MRVL) final week. In the meantime, COST outcomes come out on the heels of disappointing gross sales outcomes.

For extra on the general market, see why Morgan Stanley fairness strategist Mike Wilson believes it is perhaps time to take income after the current bear market rally.