Don't focus on Trump policies, focus on earnings: Strategist
Michael Arone, State Street's Global Advisors chief investment strategist for its US SPDR Business, joins Market Domination to discuss the impact of rising treasury yields (ES=F, NQ=F, YM=F) on the equity market (^DJI, ^IXIC, ^GSPC) Arone tells hosts Josh Schafer and Julie Hyman that while yields are rising due to strong economic growth, inflation, and earnings, he believes "investors are wrongly obsessed" with the amount of interest rate cuts expected from the Federal Reserve in 2025. “As long as the economy is growing, inflation is headed in the right direction, the labor market is strong, [the] consumer is strong, and businesses' earnings are good," Arone says, "the stock market can do well." "I do think that ultimately, what you'll need to see is some softening in the labor market — and the labor market has softened some year over year" — if the US economy's resilience begins to raise concerns, Arone explains. "The rate of job gains has slowed, the unemployment rate has ticked up, but jobless claims remains low and is a leading indicator of labor market strength." To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Josh Lynch
