Cowen Managing Director and Head of Market Strategy Chris Pollard examines the impact of the Fed's interest rate hikes on markets as stocks rally and the economic environment amid inflationary and labor pressures.
U.S. stocks charged sharply higher Tuesday as Wall Street built on momentum from a broad market rally that kicked off the month and quarter earlier this week.
Wall Street rallied for a second straight day to end higher on Tuesday after softer U.S. economic data and a smaller-than-expected interest rate hike by the Australian central bank stirred hope that the Federal Reserve might temper its aggressive raising of rates. While labor demand remains fairly strong, U.S. job openings fell by the most in nearly 2-1/2 years in August in a sign the Fed's mission to tame inflation by tightening policy was working to slow the economy. Earlier, the Reserve Bank of Australia surprised markets with a smaller-than-expected interest rate hike of 25 basis points.