The corporate sector likes and demands certainty, predictability, and transparency. Without these, companies are unable to make sound investment decisions. In fact, they are legally required to be transparent themselves, and disseminating false or misleading information carries legal consequences.
After once again blowout results, not even the amazing sight of Microsoft joining Nvidia as a $4 trillion valued company and Apple joining Google as $2 trillion one can inspire the three houses of bourse power, the Dow, S&P and Nasdaq (or as some say, the three horses of the Apocalypse) to march on again to all-time highs. Meta, Microsoft, and Alphabet have spent $186 billion on capital expenditures over the past year, which amounts to nearly all the revenue of the S&P 500 companies.
A look behind the raw numbers foretells topping action. As expected, the US central bank kept interest rates unchanged, although the decision was not unanimous, with two governors dissenting. Unsurprisingly, the move irritated the President, who pointed to the 3% economic expansion in 2Q to reiterate his view that inflation is under control and that lowering borrowing costs is inevitable.
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