Wall Street’s high-stakes, all-or-nothing bets on economy’s resilience amid inflation battle

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.
Published on

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.

Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.

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.

___STEADY_PAYWALL___

Loading content, please wait...

Related Stories

No stories found.
BizNews
www.biznews.com