Wall Street’s high-stakes, all-or-nothing bets on economy’s resilience amid inflation battle
Wall Street traders are making bold bets on the U.S. economy surviving Jerome Powell's inflation battle, triggering a speculative frenzy. Small-cap stocks surged, high-yield bond funds attracted $11 billion, and even Cathie Wood's Ark fund regained favour. Despite signs of a soft landing, skeptics warn of a "pipe dream," with fears that inflation control could lead to a harder economic landing. Investors, buoyed by the belief that the Fed is done tightening, are eyeing rate cuts, but caution prevails amid historical instances of optimism turning sour.
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Wall Street Traders Are Placing All-or-Nothing Bets on a Soft Landing
By Denitsa Tsekova
From the weakest borrowers in Corporate America to the abandoned districts of the S&P 500, Wall Street traders are placing fresh all-or-nothing bets that the US economy will survive Jerome Powell's war on inflation.
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