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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Stock Market Today: Dow, S&P 500, Nasdaq Rally as Fed Holds Rates and Iran Peace Deal Lifts Sentiment
U.S. stocks edged higher on Thursday as investors welcomed the formal signing of an interim U.S.-Iran peace agreement and digested a Federal Reserve meeting that kept interest rates unchanged while leaving the door open to additional tightening later this year.
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