The Fear and Greed Index reflects the state of investors’ sentiment at the time of writing. This gauge just dropped to 13, indicating that market participants are in “Extreme Fear” mode.
Analysts Now Expect an Interest Rate Hike in September
Data from FedWatch reveals that analysts do not just expect delayed cuts, which was the baseline scenario a few weeks ago. Now, they anticipate an interest rate hike as soon as September this year.
The reason: the price of oil has managed to stay above $90, and the war in Iran has no end in sight.
This has major implications for the valuation of risky assets, as it implies that market conditions are actually deteriorating.
The move was prompted by the most recent release of the PCE Price Index – the Federal Reserve’s preferred gauge for inflation in the United States.