Anticipation of delayed Fed rate cuts positive for status quo momentum trade - Wells Fargo

seekingalpha05-03

Markets anticipating a delay in when the Federal Reserve will begin rate cuts aids momentum traders while the reflation trading strategy is dented by the Federal Reserve’s reluctance to start reducing...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAnticipation of delayed Fed rate cuts positive for status quo momentum trade - Wells Fargo\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-03 01:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4098974-pushback-of-fed-funds-expectations-positive-for-status-quo-momentum-trade-wells-fargo><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Markets anticipating a delay in when the Federal Reserve will begin rate cuts aids momentum traders while the reflation trading strategy is dented by the Federal Reserve’s reluctance to start reducing...</p>\n\n<a href=\"https://seekingalpha.com/news/4098974-pushback-of-fed-funds-expectations-positive-for-status-quo-momentum-trade-wells-fargo\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MTUM","symbol_name":"MSCI美国动量因素ETF-iShares Edge","start_time":0,"source_url":"https://seekingalpha.com/news/4098974-pushback-of-fed-funds-expectations-positive-for-status-quo-momentum-trade-wells-fargo","article_id":"2432335529","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/458706111/image_458706111.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2432335529","pubTimestamp":1714670468,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Markets anticipating a delay in when the Federal Reserve will begin rate cuts aids momentum traders while the reflation trading strategy is dented by the Federal Reserve’s reluctance to start reducing","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"MTUM":"MSCI美国动量因素ETF-iShares Edge","BK4588":"碎股","BK4581":"高盛持仓","BK4585":"ETF&股票定投概念","BK4550":"红杉资本持仓","JMOM":"JPMorgan US Momentum Factor ETF","XLE":"SPDR能源指数ETF","PDP":"Invesco Dorsey Wright Momentum ETF","FMAT":"Fidelity MSCI Materials Index ETF","XLI":"工业指数ETF-SPDR","BK7096":"制药","IXC":"全球能源业ETF-iShares","BK4570":"地缘局势概念股","COPX":"铜矿ETF-Global X","FDN":"First Trust Dow Jones Internet I","BK4535":"淡马锡持仓","XLB":"材料ETF","IXC.AU":"INVEX THERAPEUTICS LTD"},"translate_title":"美联储推迟降息的预期对现状有利动量贸易——富国银行","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"US2Y.BOND":1,"XLI":1,"XLE":1,"XLB":1,"US7Y.BOND":1,"US6M.BOND":1,"US5Y.BOND":1,"US3Y.BOND":1,"US30Y.BOND":1,"US12M.BOND":1,"US10Y.BOND":1,"PDP":1,"MTUM":1,"IXC.AU":1,"IXC":1,"FMAT":1,"JMOM":1,"COPX":1,"FDN":0.9,"US912797HH31.BOND":0.6,"US912797HG57.BOND":0.6,"US912797HE00.BOND":0.6,"US912797GW17.BOND":0.6,"US912797GL51.BOND":0.6,"US912797GK78.BOND":0.6,"US912797GB79.BOND":0.6,"US912797FS14.BOND":0.6,"US912797FH58.BOND":0.6},"content_text":"Markets anticipating a delay in when the Federal Reserve will begin rate cuts aids momentum traders while the reflation trading strategy is dented by the Federal Reserve’s reluctance to start reducing interest rates, according to Wells Fargo.  As inflation stall above the Fed's 2% target, investors have been extending the time of when they foresee the Federal Open Market Committee jumpstarting rate cuts. Current pricing suggests the first move will be in September compared with previous expectations of reductions starting in June. Federal Reserve Chair Jerome Powell on Wednesday said economic data suggest the Fed’s restrictive monetary policy needs more time to cool inflation.  “The pushing back of fed fund expectations remains positive for the Momentum (and market) trade as it keeps the status quo in place,” Chris Harvey, head of equity strategy at Wells Fargo Securities, said in a note Wednesday. The Federal Open Market Committee on Wednesday left the fed funds rate at 5.25%-5.5%.  At the margin, the \"less-dovish\" Fed is negative for the reflation trade, Harvey said, pointing to sectors such as energy, materials and industrials that are widely seen as beneficiaries during an economic recovery. “Moreover, growth expectations have reset and inflation expectations appear to be tethered to growth. To moderate inflation, growth probably needs to be clipped, a negative for the group,” Harvey said.  Here are some momentum-factor ETFs to monitor:   iShares MSCI USA Momentum Factor ETF (MTUM) Invesco Dorsey Wright Momentum ETF (PDP) JPMorgan U.S. Momentum Factor ETF (JMOM)  And energy, materials and industrials ETFs to consider:   iShares Global Energy ETF (IXC) Energy Select Sector SPDR Fund (XLE) Materials Select Sector SPDR Fund (XLB) Fidelity MSCI Materials Index ETF (FMAT) Industrial Select Sector SPDR Fund ETF (XLI) Global X Copper Miners ETF (COPX)","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2432335529"}