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Gordon Johnson, CEO / Analyst at GLJ Research, observes a sharp shift in market expectations for a U.S. Federal Reserve rate hike in October.
According to Johnson, the likelihood of a rate increase jumped from a coin flip to 75 percent within a single session after the release of stronger-than-expected flash PMI data. Services registered at 58.7, manufacturing was near 57, and price gauges reached their highest levels since October 2022, a period when the Federal Reserve was still implementing 75 basis point increases.
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Johnson previously highlighted that Tesla lacks federal, state, and technical approvals for unsupervised Robotaxi service, with key rules still in place, in a recent analysis on Tesla driverless operations. He also flagged missing details on Cybercabs and a new U.S. probe after Tesla shares fell 6 percent following the anticipated event, as reported in his coverage of the Cybercab event. These prior observations reflect Johnson’s focus on regulatory and event-driven shifts impacting major stocks.