An October Surprise: Another Rate Hike Coming

Summary Rising energy prices and persistent inflation have derailed hopes for rate cuts, intensifying headwinds for equities and credit markets. Higher rates are severely pressuring the housing and commercial real estate sectors, with inventory surging and CMBS delinquencies nearing 8%. AI infrastructure buildout faces funding risks as hyperscalers and private credit markets strain under mounting debt and rising yields. The article below highlights why the odds of another rate hike in October are growing and why it might not be the last in this cycle. Looking for a helping hand in the market? Members of The Biotech Forum get exclusive ideas and guidance to navigate any climate. Learn More » J Studios/DigitalVision via Getty Images The markets remain quite resilient given the myriad economic and geopolitical headwinds that are currently present. The year began with expectations of two 25bps reductions to the Fed Funds rate. The yield on the 10-Year treasury This article was written by Bret Jensen 58.68K Followers Follow Bret Jensen has been investing since the 1980s. He has been writing for Real Money Pro and Seeking Alpha since 2010. Bret specializes in high beta sectors with potentially large investor returns.Bret leads the investing group The Biotech Forum, in which he and his team offer a model portfolio with their favorite 12-20 high upside biotech stocks, live chat to discuss trade ideas, and weekly research and option trades. The group also provides market commentary, and a portfolio update every weekend. Learn More. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.