Stock rally fanned by hopes of Fed ‘past peak hawkishness’

Published by
Reuters

By David Randall NEW YORK (Reuters) -Bad news may once again be good news on Wall Street, as signs of slowing U.S. growth fan hopes that the Federal Reserve may not need to tighten policy as much as previously expected. Home sales have fallen for a third straight month, while big misses from retail giants such as Target Corp and Walmart Inc shook their share prices last week. The Atlanta Fed’s GDPNow estimate of real GDP growth for the second quarter fell to 1.8% on May 25, from 2.4% the previous week. Softer economic growth raises risks of weaker corporate profits, in theory paving the way fo…

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