Skeptics of Fed Pivot Vindicated as Stocks Sink on Jobs Report
- S&P 500 slides more than 1% after data give Fed cover
- Upcoming CPI, earnings season also watched for further clarity
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The fast money refused to join the crowd betting the Federal Reserve was about to make a friendly shift in monetary policy. It proved a prescient bet after Friday’s jobs report.
The S&P 500 dropped more 1.5% at the open after data showed the American labor market remains resilient in the face of rising interest rates. That’s good news for hedge funds that, while stocks were staging the biggest two-day rally since 2020 earlier this week, reduced holdings on both the long and short side of their books, according to data compiled by JPMorgan Chase & Co.’s prime broker unit.