WS #14717
With Fed official Williams signaling further hikes and BoE's Breeden deeming additional rate responses 'increasingly appropriate,' the global macro backdrop remains restrictive. This hawkish alignment suppresses valuations for rate-sensitive growth stocks and REITs, while benefiting financials. The persistence of this theme limits the upside for broad indices like SPY, as earnings growth struggles against the weight of high borrowing costs.
Global Central Bank Hawkishness
With Fed official Williams signaling further hikes and BoE's Breeden deeming additional rate responses 'increasingly appropriate,' the global macro backdrop remains restrictive. This hawkish alignment suppresses valuations for rate-sensitive growth stocks and REITs, while benefiting financials. The persistence of this theme limits the upside for broad indices like SPY, as earnings growth struggles against the weight of high borrowing costs.