Because stock market is manipulated
Why Earnings Growth, Not the Fed's Interest-Rate Policy, Is Driving U.S. Stocks
U.S. stocks have been unaffected by higher interest rates from the world's most powerful central bank over the past few years, as incremental earnings growth gives investors ample reasons to pour money into equities even amid an increasingly gloomy policy-rate outlook, according to DataTrek Research.Corporate earnings growth matters more to stock prices than the Federal Reserve's interest-rate policy over the longer run, Nicholas Colas, co-founder of DataTrek Research, said Monday in a client note.U.S. stocks have "entirely" ignored structurally higher Fed-funds rates since 2019 and moved almost exactly in line with corporate earnings power, said Colas. The yield on the 2-year Treasury note BX:TMUBMUSD02Y, a proxy for the market's expectations of the central bank's future monetary policy, has risen to 4.747% on Monday from around 1.6% at the end of 2019, while the S&P 500 index SPX has advanced 58% over the same period with its earnings up 46%, according to data compiled by DataTrek."E
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