From Investing.com: 2024-09-18 04:39:38

Stocks may experience short-term volatility following an expected interest rate cut by the Federal Reserve, with analysts at Barclays highlighting the importance of upcoming economic data. The Fed is projected to lower rates for the first time since 2020, with uncertainty surrounding the extent of the reduction. The chances of a 50-basis point cut are at 61%, while markets anticipate additional cuts by the end of 2024. History shows that equities tend to perform well after an initial cut, as long as the economy avoids a recession. Jobless claims will be a key indicator moving forward to determine economic health. Resilient economic data could halt the rally in defensive stocks supported by economic concerns, but caution remains advised by analysts.



Read more at Investing.com: “Data is what matters” for stocks after expected Fed rate cut