One-Week Winning Streak

The DJIA, Nasdaq, and S&P 500 snapped a three-week losing streak today. Why? After all, on Thursday, Fed Chair Powell in an interview at Cato Institute reiterate that the Fed won't back down on planned rate increases. "We need to act now, forthrightly, strongly as we have been doing, and we need to keep at it until the job is done," he said. "The Fed has and accepts responsibility for price stability." Powell said, "My colleagues and I are strongly committed to this project and we will keep at it until the job is done."

That doesn't sound very bullish. Furthermore, the Atlanta Fed's GDPNow tracking model cut Q3's estimated growth rate in half from 2.6% on September 1 to 1.3% today! That's consistent with our growth recession forecast for this year.