Stocks sell off 'excessive' after CPI, but don't rule out more volatility, strategist says
Expect more upside in stocks after Wednesday's “excessive” selling and recovery, said Kent Engelke, chief economic strategist at Capitol Securities Management.
Engelke said the lack of liquidity in both stocks and bonds, as well as the larger market's reaction to incoming economic data over the past few years, were likely culprits, with no easy fix.
“You're experiencing very intense volatility in a very narrow band,” Engelke told MarketWatch. “I think it's the same.”
He also thinks traders still have high expectations for a rate cut this year. “I don't think the Fed will cut more than 50 basis points this year,” he said. Thursday's odds were in favor of a 100 basis point cut by the end of the year, according to the CME FedWatch tool.
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