Federal Reserve likely to cut interest rates, leading to new market highs

From CNBC: 2024-07-17 09:47:54

Stocks have been on a roll since the last meeting in June, with the Federal Reserve likely to lower interest rates soon. The odds of a rate cut by September are at 100%, leading to new highs for the Dow Jones, S&P 500, and Nasdaq. The Club made some profitable trades, selling shares of TJX Companies, Meta Platforms, and Palo Alto Networks for gains of 150% and 94%. They also initiated a position in Advanced Micro Devices during the tech pullback. Investors are exploring sectors outside of Big Tech, with the Russell 2000 surging 11% while the Nasdaq fell 0.18% in the past week. Amidst market rotation, notable winners are Ford Motor, Morgan Stanley, Stanley Black & Decker, Apple, and Dover, each posting gains ranging from 7.3% to 17.7%. Ford’s strong performance is attributed to improving sales, while Morgan Stanley’s surge was linked to positive sentiment after a Trump victory in a debate. Stanley Black & Decker saw growth on signs of monetary policy easing benefiting housing market activity. Apple reached a record high on AI growth potential, while Dover climbed on sector rotation and AI potential.



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