WS #16028
Macro expectations are shifting as Barclays forecasts additional 25bp Fed rate hikes in December and January, contradicting the market's current pricing of a hold. This hawkish outlook is paired with the IMF's projection of modest 2.2% growth for the Western Hemisphere in 2026. The combination of higher-for-longer rates and sluggish growth presents a challenging environment for growth stocks and high-multiple assets, reinforcing the bearish sentiment in the tech sector. In corporate news, Travelers Companies beat Q3 expectations with $9.18 EPS, citing improved underlying margins and AI efficiency gains, providing a positive outlier in the earnings season. JP Morgan raised price targets for Goldman Sachs and Morgan Stanley, signaling confidence in the financial sector's resilience. Conversely, Evercore ISI lowered price targets for Charles Schwab and JB Hunt Transport, reflecting caution in the financial services and logistics sectors.
Macro Rate & Growth Outlook
Macro expectations are shifting as Barclays forecasts additional 25bp Fed rate hikes in December and January, contradicting the market's current pricing of a hold. This hawkish outlook is paired with the IMF's projection of modest 2.2% growth for the Western Hemisphere in 2026. The combination of higher-for-longer rates and sluggish growth presents a challenging environment for growth stocks and high-multiple assets, reinforcing the bearish sentiment in the tech sector.
In corporate news, Travelers Companies beat Q3 expectations with $9.18 EPS, citing improved underlying margins and AI efficiency gains, providing a positive outlier in the earnings season. JP Morgan raised price targets for Goldman Sachs and Morgan Stanley, signaling confidence in the financial sector's resilience. Conversely, Evercore ISI lowered price targets for Charles Schwab and JB Hunt Transport, reflecting caution in the financial services and logistics sectors.