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“Amateurs sit and wait for inspiration, the rest of us just get up and go to work.” – Stephen King

Good evening:

Bears received just about every headline they could have hoped for in recent weeks, from bank turmoil to continued interest-rate hikes and sticky inflation. Yet stocks, particularly technology, have held steady as we approach the end of the first quarter. This week, the Federal Reserve raised interest rates by a quarter-point, the ninth increase in a year, as it balances the long-running fight against inflation with the sudden tumult in banking. The Fed is in a tricky spot, but inflation is expected to fall, and big stocks like Apple and Microsoft continue to perform well. 

Tom Lee: Technology’s strength is a signal

Tom Lee, Head of Research, said this week’s Federal Reserve meeting was dovish for two reasons:

• Jerome Powell said financial conditions are tighter than they appear
• The Fed likely will either stop hiking or cut rates

Lee noted this week that investors remain cautious, and financial conditions are tight. But Lee says, “For the Fed, it’s not about how much they raise, but it’s their desire for financial conditions to not get worse. I think that’s why stocks actually could rally.”