With Fed QT (Quantitative Tightening) running at a pace of $95 billion a month and the Treasury forecasting its cash balance to rise by $200 billion into year end, that amounts to a squeezing of liquidity that alone implies an 8% drop for the S&P 500 by the end of December, according to their model.
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S&P 500, Nasdaq Post Best Month Since Pandemic as AI Boom Powers Surge
April delivered a blockbuster performance for U.S. equities, with the S&P 500 surging more than 10% for its strongest monthly gain since the pandemic-era rebound in 2020.
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