EliteEquity
05-29

Markets see roughly a 40% probability of the Fed hiking rates at its December meeting, up sharply from just 3% at the June meeting according to CME FedWatch. (CBS News) Fed funds futures traders are pricing in zero rate cuts for the remainder of 2026. (CNBC)

The Fed's April minutes revealed a central bank split on inflation, with a majority signaling a rate hike could be necessary if the Middle East conflict continues driving prices higher — despite holding rates steady at 3.50–3.75%. (U.S. News & World Report)

Warsh complicates this further. He was widely expected to champion rate cuts, but instead faces pressure from oil above $100/barrel and shelter inflation that doubled in April — forcing markets to consider hike scenarios instead of easing.

QQQ Slips 0.3% Monday — Why Didn't Crashing Oil Prices Save Tech?
QQQ fell 0.31% Monday in a rare divergence: U.S.-Iran peace expectations sent oil prices sharply lower and lifted the Dow, yet AI capex concerns and stretched valuations continued to weigh on Nasdaq tech. This week brings the Fed rate decision alongside Mag-7 earnings from Microsoft, Amazon, and Apple, intensifying scrutiny over AI monetization. One institution bluntly called this 'not a normal sector rotation.' With macro tailwinds and tech headwinds pulling in opposite directions, how does this consolidation resolve?
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