“You must understand that there is more than one path to the top of the mountain.” ~Miyamoto Musashi

Good evening,

For stocks, April was the worst month of the year so far, ending 4% down from its levels on April 1. It was the first down month for all three major indices since October 2023, and also one of the worst Aprils in the past 40 years. (Only April 2012 was worse for equities.) 

The second half of the month has seen equities enter what Fundstrat Head of Research Tom Lee describes as a “two steps forward, one step back” market, with rising though choppy trading, as illustrated by our Chart of the Week:

The video in this report is only accessible to members

This was the backdrop for the meeting of the Federal Open Markets Committee on May 1, during which FOMC members voted to keep rates unchanged from the levels set in July 2023. Ahead of the meeting, recent inflation prints had some speculating that Fed Chair Jerome Powell might signal a future hawkish pivot and hint at possible rate hikes soon.

Lee saw it differently.

After the meeting, the Fed announced its intentions to slow its quantitative tightening (QT), while Powell reiterated the central bank’s overall confidence and its base view that inflation is going to fall throughout the year. Afterwards, Lee asserted: “The hawks were wron...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, FSI Macro, or FSI Weekly subscription is required in order to access this content.

*Free trial available only on a monthly plan

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free