Focus on long-term plan amidst US political uncertainty, small-cap stocks surge, rate cut hopes increase.

From Morningstar: 2024-07-15 20:17:00

Dan Kemp, Morningstar’s global chief research and investment officer, shares key market performance insights and economic trends.

Investors faced with uncertainty post US political violence are advised to stick to their plan and avoid reactive moves to minimize volatility.

Small-cap stocks surged last week, with Morningstar US Small Cap index rising 4.62%, offering potential for higher returns for long-term, valuation-driven investors.

Lower-than-expected inflation data increased hopes for a rate cut, with a 92.9% probability of at least two cuts by year-end, as per CME Fed Watch.

US bank stocks rose as earnings season kicked off positively, driven by strong profit growth and market optimism on potential interest rate cuts.

Upcoming week presents noisy data releases and earnings reports, testing investor focus on US economy indicators and company performance. Stick to long-term plan and strategy amidst the noise.



Read more at Morningstar: Markets Brief: Politics Makes a Comeback