Stocks Down Yesterday, But Off Their Lows

Plus 5 New Strong Buys for Today Stocks Down Yesterday, But Off Their Lows [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Down Yesterday, But Off Their Lows [Stocks Down Yesterday, But Off Their Lows]Image: Bigstock Stocks closed lower yesterday, but well off their lows. Stocks sank late last week after reports that inflation rose more than expected (up 7.5% y/y), which was a 40-year high. And reports that Russia could invade Ukraine "at any time." The administration underscored the imminence of a potential invasion last week when U.S. National Security Advisor, Jake Sullivan, said "it could begin during the Olympics." Although, he was quick to point out that he could not confirm whether a "decision has been taken" by President Putin on whether to invade or not. In the meantime, diplomatic efforts continue in hopes of resolving the Russia/Ukraine tensions without war. While stocks finished down yesterday, the Nasdaq was up for most of the session, and the S&P briefly turned positive in the early afternoon. With the next FOMC meeting not until mid-March (it begins on March 15th and ends on the 16 th), you can expect volatility to stay at least until then. Especially after St. Louis Federal Reserve President, James Bullard, said that he would "like to see 100 basis points in the bag by July 1," prompting speculation that the Fed will have to increase rates faster at some point to meet that target, if that's indeed the agenda. Interestingly, prior to last week, the debate was whether the Fed would make their first rate hike at the March meeting. But since then, it's morphed into not whether there'll be a hike, but whether it'll be a quarter-point or half-point move. Either way, interest rates are still at historically low levels, i.e., near zero today. And even at a 50 basis point increase in March, that would still leave rates at historically low levels, while simultaneously helping to wring out some of the excess liquidity that's helped stoke inflation. And that's bullish. In other news, as Omicron cases continue to decline, and more and more Covid restrictions are being lifted. That bodes well for even more economic growth to come. And that suggests we could see a lot more upside for both the economy and the market. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [3 Cryptos Better than Bitcoin]( Is your crypto portfolio ready for 2022? With Bitcoin struggling, now is the time to reorient your crypto plays. That's why Luke Lango, InvestorPlace's resident crypto expert is releasing his latest calls... completely free. You can get them in his latest report, "Top 3 Cryptos for 2022." 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