The Fed came very close to promising a rate cut Wednesday, and now markets are focused on a possible July rate cut.Market Insiderread more
Markets had expected the central bank to keep its benchmark interest rate steady while setting up a cut at the July meeting.The Fedread more
Powell said policymakers are concerned about some of the recent economic developments and see a growing case for easier policy.The Fedread more
Amazon and Blue Origin founder Jeff Bezos gave more insight into his space company's lunar plans on Wednesday.Technologyread more
As the presidents of U.S. and China near a highly anticipated meeting on trade, the gap in both sides' expectations regarding a deal remains wide.World Politicsread more
Delta warned travelers that a technical problem could delay flights on Wednesday.Airlinesread more
The Fed chief said that despite reports that Trump was looking to demote or fire him, he doesn't plan on leaving anytime soon.The Fedread more
If the Trump administration and Congress fail to reach a spending agreement, the White House will offer to keep the government funded at its current levels for a year, Mnuchin...Politicsread more
With bold and targeted steps, economists say, government can increase opportunity and incomes for many more people in ways that strengthen, not weaken, American capitalism.Politicsread more
Investors need to be cautious because the economy will get hurt the longer the trade war drags on, Jim Cramer says.Mad Money with Jim Cramerread more
Slack Technologies' reference price was set at $26 per share, the New York Stock Exchange announced Wednesday evening.Technologyread more
The fourth-quarter stock market meltdown continued to reverberate with investors in January, with many fleeing to cash and dumping risk despite a sharp rebound during the month.
Bank of America Merrill Lynch's latest fund manager survey, which gauges where global pros are positioning, showed the biggest net overweight position in cash since January 2009, just two months before the market bottomed and set up the longest bull run in Wall Street history.
Pessimism ran so high during the month that 34 percent of the 173 respondents said they think the peaked in 2018 at 2,931, or 8.2 percent below Monday's close.
Allocations to global equities fell 12 percentage points to a 6 percent overweight, or the level compared with what would be typical. That's the lowest since the market turbulence of September 2016.
In all, Bank of America's strategists see all the fear as adding up to opportunity.
"Despite the recent rally, investor sentiment remains bearish," Michael Hartnett, chief investment strategist at the firm, said in a note titled "My Big Fat Buyers' Strike." "Fund managers' positioning is still a Q1 positive for risk assets," he said.
Indeed, the U.S. market is in the midst of a strong run that has taken the S&P 500 up 8.1 percent year to date, while the MSCI World Index has risen more than 7 percent.
Sentiment moving to extremes has been a reliable contrarian indicator for the market historically. The January stock market rally coincided with a cash allocation of 4.8 percent, which is above the 4.5 percent threshold that Bank of America considers a bullish sign.
Along with their aversion to stocks, fund managers indicated worry about global growth, as 55 percent say they are pessimistic about the economy and inflation.
Stocks tanked in late 2018 amid worries that global growth was slowing and that the Federal Reserve was about to make a policy mistake by continuing to raise interest rates in the face of the weakness. Fed officials have since indicated they are pausing on more tightening and will be patient in the future regarding additional hikes.
Markets rallied amid the policy dovishness, though most economists still expect a growth slowdown this year.