Republic Risk: Breakdown
Equity Storm Watch Is GREEN on the S&P 500 and YELLOW on the Russell 2000
Futures are lower this morning, following a dramatic twist in France's elections. The left-wing New Popular Front alliance and President Macron's centrist group managed to stave off what many thought would be a sweeping victory by Marine Le Pen. Not that anyone really cares about French politics—stateside, all eyes will be on Federal Reserve Chair Jerome Powell, who is scheduled to testify before Congress on Tuesday about the future of monetary policy. Then on Thursday, the CPI data drops, offering fresh clues into the Fed's next moves ahead of Friday's earnings reports from major U.S. banks.
Dear Fellow Expat:
Welcome to earnings season. There’s a storm brewing due to weak liquidity in the global markets, all part of a trend from the April challenges. Now, as we head into what is supposed to be a positive earnings season - with the strongest projections since 2021 - markets are in a holding pattern.
The Russell 2…
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