Jurrien Timmer’s global macro view – January 22, 2024

Today on the program, Fidelity Director of Global Macro Jurrien Timmer discusses the latest market moves, potential Fed rate cuts and possible supply chain issues.  US equity markets opened up at all-time highs this week. So could these highs and rallies continue? And how much of an impact do these gains have on the Fed’s interest rate moves?  Jurrien points out that although the S&P cap-weighted index did make a new all-time high, the Russell 2000 small cap index is in a bear market. It’s down 20 percent from its high. This is the first time in history we’ve seen this. He explains that small caps being behind is not unusual. It’s not unusual for large caps to go first then small caps to follow. But he points out, the spread has never been this wide. And that is a testament to the Magnificent Seven leadership in the market. But Jurrien says if history is any guide, these stocks will follow at some point. Jurrien also touches on the Fed and says back in December when the Fed gave a hint that we would get three rate cuts in 2024, the market just ran with it. Now the market is walking back a git and that’s also one of the reasons why small caps are under some pressure.

Recorded on January 22, 2024

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