Stock Market Is Worried About the Fed Going Too Far, Wells Fargo's Cronk Says

The transcript discusses the current market volatility, highlighting dramatic movements in both directions. It attributes this to the market's attempt to reprice and reset growth rates for the upcoming year. The discussion identifies three key events affecting the market: trade concerns, Brexit developments, and the UK Parliament's actions. Additionally, the transcript covers the inversion of the yield curve and its implications for Federal Reserve rate decisions. The market's fear of a potential Fed mistake with rate hikes is also addressed, noting a shift in expectations from multiple hikes to just one in 2019.

What are the three main concerns affecting the market's attempt to reprice and reset growth rates?

• Corporate earnings, consumer spending, and housing market

• Interest rates, currency exchange, and oil prices

• Inflation, unemployment, and GDP growth

• Trade, Brexit, and UK Parliament actions

What does the inversion of the yield curve indicate to the Federal Reserve?

• To increase interest rates

• To decrease interest rates

• To stop operating rates

• To maintain current interest rates

What is the bond market's message to investors regarding the yield curve?

• The yield curve is steepening

• The yield curve is irrelevant

• The yield curve is volatile

• The yield curve is flat

How has the market's expectation for Fed rate hikes in 2019 changed?

• From two hikes to none

• From no hikes to two

• From three or four hikes to one

• From one hike to three or four

What impact did program trading have on equities and Treasurys?

• Increased volatility in both markets

• Caused selling in equities and buying in Treasurys

• Caused buying in equities and selling in Treasurys

• Stabilized both markets