US EditionFed Chief Powell says stock prices appear ‘fairly highly valued’
Powell highlighted equity prices as fairly highly valued and noted that only 17% of S&P 500 stocks outperformed the index in the past three months, indicating narrow market breadth.
- On Tuesday, Federal Reserve Chair Jerome Powell said equity prices appear fairly highly valued while speaking in Providence, Rhode Island.
- With the policy outlook uncertain, Jerome Powell, Federal Reserve Chair, said the rate-cutting path isn't clear and stressed trade-offs between inflation and the labour market.
- Major U.S. indexes fell, with the Dow losing 88.76 points, the S&P 500 down 36.83 points and the Nasdaq shedding 215.50 points as Nvidia and Oracle lagged.
- On Wednesday, futures markets edged higher as investors assessed Powell's cautious remarks and awaited Friday's personal consumption expenditures reading, while Powell said he does not see elevated financial stability risks.
- Valuation measures show the total market cap to GDP ratio at 216.6% and the forward P/E for the S&P 500 at 22.8, with household stock exposure rising to 65.8%.
9 Articles
9 Articles
S&P 500, Nasdaq futures tick up as investors weigh Powell’s remarks
(Reuters) -Futures for the S&P 500 and the Nasdaq edged higher on Wednesday as investors assessed cautious commentary from U.S. Federal Reserve Chair Jerome Powell and looked ahead to key economic data later in the week. While the recent numbers point to a resilient economy, comments from Fed officials have injected some wariness, especially about the labor market. Powell added to the measured tone on Tuesday, noting that asset prices appeared f…
Warren Buffett Ratio Tops 216%, Valuation Metrics Mimic 1999 Crash As Powell Says Stocks Are 'Fairly Highly Valued' Amid Looming Bubble Speculations - SPDR S&P 500 (ARCA:SPY)
Amid growing speculation about a potential market bubble, Federal Reserve Chair Jerome Powell acknowledged that “by many measures… equity prices are fairly highly valued”. His comments on Tuesday came as multiple key valuation metrics reached levels not seen since the dot-com crash. Buffett Indicators Flashes Warning Signals Two of the most closely watched long-term indicators are fueling the debate. The Total Market Cap to GDP ratio, often refe…
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