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Stock impact report

Goldman Sachs delivers blunt message on interest rate hike [Yahoo! Finance]

JP Morgan Chase & Co. (JPM) 
Last jp morgan chase & co. earnings: 4/14 06:43 am Check Earnings Report
Company Research Source: Yahoo! Finance
The bank says investors are overestimating the likelihood that the Federal Reserve will raise interest rates in response to the current oil price surge. Surging energy prices and mounting stagflation fears have rattled global markets in recent weeks. At one point, futures markets implied a greater-than-even chance that the Fed would hike by year-end, according to CME Group's FedWatch tool. Those odds have since pulled back to around 14%. Goldman's view is that the market reaction is overdone and out of line with history. What Goldman's note said Strategist Dominic Wilson laid out the bank's case in a note to clients. His argument is that the market has overreacted to an oil shock by pricing in a policy response that history suggests is unlikely to materialize. "The market has priced a much larger hawkish shock than historical experience would suggest," Wilson wrote. "We think the market is mispricing the policy distribution now, though the 1990 experience suggests the market Show less Read more
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