Good afternoon - QQQs flat after some volatile action post Powell as takeaway is hikes not on the table and that Fed was prepared to maintain the present Funds Rate for as long as needed. From VitalKnowledge: “As to when the Fed will cut, Powell repeated what he said a few weeks ago: gaining the confidence required for policy easing about inflation being on a sustainable path to 2% will take longer than previously expected. That’s hawkish on an absolute basis, but markets have already shifted dramatically, with just 1-1.5 cuts assumed for 2024…with updated language on inflation not shifting as hawkish a direction as feared.” Powell said ”My personal forecast is that we will see further progress on inflation this year.”
Moving to TMT, non-profitable tech and Megacap (AMZN) led the way as yields declined. Semis underperformed significantly giving back some of the outperformance from last week’s capex comments from the hyperscalers on the back of SMCI/AMD results. We feel fine about sem…
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