Themis Trading partner says US inflation is sticky, stock market may face greater pressure
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AT A GLANCE
Joe Saluzzi believes that if inflation and interest rates remain high, the profitability of companies that rely on borrowing may come under pressure, which could ultimately affect their stock prices.
Article
Trading firm: Further evidence of sticky US inflation; rising rate-hike expectations may eventually weigh on stocks
BlockBeats news,November 10, Joe Saluzzi, partner and co-head of equity trading at Themis Trading, said: “The inflation data came in higher than expected, prompting some people to reassess the market outlook. In particular, a Federal Reserve governor previously suggested that if inflation data came in high, the Fed could raise rates by 50 basis points in a single move before the end of the year. I think a rate hike of 50 basis points would be too large at this point, but for now, a hike of 25 basis points remains a possible option. The data did come in higher and demonstrated that inflation is sticky.
Overall, as long as interest rates and inflation remain elevated, rates will continue to face upward pressure. This will place ongoing pressure on companies that rely on debt financing and could hurt their profitability, ultimately affecting their share prices. Companies have managed to cope with this environment to some extent over the past period, but if it persists, I expect the stock market to face greater pressure.”
Original link:https://m.theblockbeats.info/flash/376621
Key points
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BlockBeats reported on November 10 the comments of Joe Saluzzi, partner and co-head of equity trading at Themis Trading.
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Saluzzi said the inflation data came in higher than expected, and believes this confirms the stubbornness of inflation.
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He believes a rate hike of 50 basis points would be too large, but a hike of 25 basis points remains a possible option.
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He expects that if inflation and interest rates remain high, companies that rely on borrowing for financing will continue to face pressure, their profitability may be impaired, and the stock market may come under greater pressure.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This content is the judgment of people at trading institutions, not the Federal Reserve announcing a rate hike. His logic is: if inflation and interest rates remain persistently high, companies that rely on borrowing will face sustained pressure, earnings may be impaired, which in turn could affect stock prices. The stock market pressure here is a conditional forecast, not an outcome that has already occurred.
Why it matters to readers
This commentary suggests that inflation, interest rates, and corporate earnings should be observed in connection with one another, rather than treating the possibility of rate hikes directly as an already determined policy.
Clearly distinguish personal views, policy possibilities, and formal decisions; the 25 or 50 basis points mentioned in the original text are not announced rate hike outcomes.
Risks and unknowns
The original text does not provide the name of the inflation indicator, specific figures, the statistical period, or expected values, making it impossible to verify the extent to which it was "higher than expected."
Regarding the claim that a Federal Reserve governor hinted at a possible one-time 50 basis point rate hike before year-end, no name of the governor or the original statement was provided.
A 25 basis point rate hike is a possible option raised by Saluzzi; the material does not provide a formal interest rate decision.
The damage to corporate profits and the pressure on the stock market are both conditional forecasts, and the materials do not provide actual outcomes.
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Basis Points
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