Five Steps To A Santa Rally On Wall Street

It all hinges on the evolution of the data, of course, but absent an inflation re-escalation or evidence to suggest the lingering mismatch between labor supply and demand supporting jobs growth poses a wage-price spiral threat, the Fed looks inclined to dial down the hawkish rhetoric. That, in turn, could beget a durable duration bid and, ultimately a "Santa rally." Famous last words, I know. But the Fed "rhetoric shift" talking point isn't just wishful thinking. Indeed, you'd be obtuse not to