The earnings had to come in to back fill those price moves, " he said. "The market had run up so much from the bottom but we had no earnings to show for it.
Strong earnings were particularly important to justify a run-up in company valuations, said Mr. While inflation concerns have dragged on investor sentiment, strong earnings for the third quarter have had the opposite effect and helped lift indexes to their record levels.
Officials are unlikely to suggest any major changes to their pathway for interest-rate increases, said Mr. "The market will disagree, but I think the biggest risk is that the Fed doesn't move fast enough" in raising rates, he said.Įconomists expected the Fed on Wednesday to begin winding down its asset-buying program but leave interest rates unchanged. "Virtually every policy taken has been inflationary in nature and the market has been very blasé about it all," said Tim Courtney, chief investment officer at Exencial Wealth Advisors. The Bank of England is expected to increase rates when it meets on Thursday, while Canada's central bank suggested last week that it could do so as soon as April. On Tuesday, the Reserve Bank of Australia signaled it would raise interest rates sooner than expected. Major central banks elsewhere in the world, concerned about stubbornly high inflation, have been moving forward plans to raise rates. The Fed's two-day policy meeting will be a key focus of investors this week who have grown increasingly concerned that a period of rising prices could last longer and weigh more on the economy than central bank officials have suggested. Stock futures paused after all three major indexes closed at record highs, as the Federal Reserve was set to begin its two-day policy meeting against a backdrop of sharpening inflation concerns. Federal Open Market Committee meeting U.S.
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