Interest Rate Hikes End But Impact Persists

Market Overview
Read time 0.7 minutes

Year To Date Performances:

1. The prospect of the end of Fed hikes raises questions about their lingering effects on the economy. TD's analysis suggests that the peak impact of a rate hike becomes evident approximately four quarters later for GDP and about six quarters later for inflation. In essence, the current economic conditions are a result of policy rates from mid-2022, indicating that the full impact of rate hikes on the economy is yet to be felt. As a result, Apollo's Torsen Sløk predicts that this delayed impact could lead to a further deterioration in credit conditions and lending growth in the future.

2. Investors who bought Carvana shares on January 1 would have seen their investment grow tenfold, as the stock has surged over 1,000% year-to-date. The recent announcement of a deal that will reduce outstanding debt by $1.2 billion triggered a 40% jump in the shares. However, despite this impressive performance, the stock still trades at around $56 per share, a considerable distance from its 2021 high of $376.

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4. Headlines

   1. Apple is working on its own AI chatbot internally called Apple GPT.

   2. Barbie and Oppenheimer are expected to have brought in over $250M this weekend.

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