Mixed Signals: Fed Rate-Hike Pause Leaves Investors Uncertain About Stock Market

Bank of America's Michael Hartnett says it's not yet time to buy equities as outflows accelerate amid elevated inflation and recession fears, despite the Federal Reserve signaling its willingness to pause rate hikes. Redemptions from global stock funds reached $6.6 billion in the week through May 3, while inflows into cash funds surged to nearly $60 billion, and $11 billion entered bonds. Hartnett reiterated a call to "sell the last rate hike" and said that a "new structural bull market requires big Fed easing," which in turn needs a "big recession."