Market is ignoring Fed's warnings, investing in tech stocks in anticipation of rate cuts.

From Yahoo Finance: 2024-06-15 10:00:00

Traders are defying the Federal Reserve’s warnings of higher interest rates, pouring money into technology stocks in anticipation of lower borrowing costs. Despite the Fed’s projections for fewer rate cuts this year, the S&P 500 hit a record high of over 5,400 on Wednesday. Investors are preparing for when the Fed eventually decides to cut rates, as historical data suggests that rate cuts typically boost equity returns. Fund managers are increasing exposure to tech stocks and defensive sectors like utilities and real estate. Next week’s “triple witching” event could bring volatility to the markets.



Read more at Yahoo Finance: The Market Is Blowing Off What the Fed Is Saying About Rates