The stock marketSo this is how convoluted this bear market is. So the Feds will likely raise interest rates 75 basis points to its neutral target of 2.5%. This neutral rate won't hurt or harm economic growth so the market can continue to rally.
Late Monday, Walmart announces that it has cut it's quarterly and full year profit estimates citing inflation has caused consumers to cut back on spending. So this should be considered good news, as this is how inflation comes down and this has also been the purpose of raising interest rates. Reduce consumer spending so as to decrease demand and the prices of goods will eventually drop. This should also be great news for gold stocks, as inflation should be at it's peak. If inflation is under control and eventually drops than gold prices should begin to increase.
But then futures dropped on Walmart's news on anticipation of others having lower estimates too and so this creates more chaos in the market on recession fears. However, the governments wanted to create a recession to combat inflation, so it's not like lower estimates from companies should be unexpected at this point. It should be exactly what you want to hear, as this means inflation should begin to decrease. So it's just a mess, but a somewhat controlled mess that should result in only a mild recession, so as long as people continue to curb their spending at this time and the manufacturing and supply chains can be fixed during this period to meet future consumer demand and not create inflation in the process when the Feds begin to lower interest rates to stimulate the economy again.