Big Money Takes a Timeout: Futures Market Reacts to Mixed Economic Data
Home Sales Fall Short, PMIs Sizzle: What Does it Mean for the Fed?
As the futures market opened this morning, big money seemed to be taking a breather. The release of mixed economic data had some investors hesitant to make any big moves, at least for the moment. Existing home sales came in at 4.00 million, falling short of the expected 4.10 million. On the other hand, manufacturing PMI, S&P Global PMI, and Services PMI all exceeded expectations.
It’s always a toss-up with economic data releases, but it seems that the futures market was caught off guard this time around. The unexpected drop in home sales could be a sign that the red-hot housing market is finally starting to cool off. This, coupled with rising inflation, could have an impact on the Fed’s decision-making process.
What’s Hot: PMIs Sizzle
On the other hand, the sizzling PMIs may be an indication that the economy is continuing to heat up. Manufacturing PMI came in at 47.8, well above the expected 57.1. S&P Global PMI also exceeded expectations, coming in at 50.2. Meanwhile, Services PMI hit 50.5, far surpassing the predicted 47.2.
It’s hard to ignore these impressive numbers, but the question is, what will the Fed do with this information?
The Fed’s Next Move: Rate Hikes or Tapering?
The Fed has been facing mounting pressure to address the rising inflation, and these mixed economic data could make it even harder for them to decide on their next move. Will they continue with rate hikes, or will they consider tapering their bond-buying program?
The FOMC meeting minutes, which are set to be released tomorrow, will undoubtedly provide more insight into the Fed’s decision-making process. It’s anyone’s guess what the Fed will decide, but one thing is for sure, big money will be paying close attention.
“Big Money Takes a Timeout, Cites ‘Indecisiveness’ as Reason”
When asked why they were hesitant to make any big moves in the futures market, big money seemed to be playing it coy. “We’re just feeling a little indecisive today,” said one top investor. “You know how it is, sometimes you just need to take a step back and reassess.”
Perhaps big money is just trying to keep us on our toes, or maybe they’re waiting for a sign from the Fed. Either way, we’ll be eagerly awaiting the FOMC meeting minutes to see what big money will do next.
