Wharton Professor Jeremy Siegel on why this upcoming FOMC meeting is important

• The 'Magnificent 7' tech stocks experienced their biggest drop relative to the S&P 500 in four years, indicating a market rotation.
• WTI crude oil prices have surged from $70 to $90 per barrel in two weeks, raising concerns about inflationary pressures.
• The upcoming FOMC meeting is crucial, with potential for a hawkish tilt from some Fed members due to persistent inflation, despite hopes for oil prices to decline.
• Siegel notes that while current interest rates are not yet a threat to risk assets, rising real yields (10-year Treasury at 2.5%) could challenge the stock market's current 5% earnings yield (20x P/E).

Wharton Professor Jeremy Siegel discusses current market dynamics, highlighting the underperformance of the 'Magnificent 7' tech stocks and the sharp rise in WTI crude oil prices. He emphasizes the critical nature of the upcoming FOMC meeting, where the Fed's stance on inflation, especially core inflation and rising energy costs, will significantly influence future interest rate policy and market valuations.