Investors hopeful for rate cut in September, driving stock market rally

From Yahoo Finance: 2024-07-16 12:32:01

Investors are confident of a Federal Reserve interest rate cut this September, with markets now pricing in a 100% chance, up from 70% a month ago. This increased confidence follows a better-than-expected June inflation reading and signs of cooling in the labor market. Fed chair Jerome Powell expressed a sense of assurance in inflation falling to its target, but did not specify timing for the cut. Despite uncertainty, investors anticipate lower interest rates soon, driving a broad stock market rally. Tech stocks have underperformed as investors shift to sectors like Real Estate and Industrials that benefit from rate cuts. The small-cap Russell 2000 index is up nearly 10% and recently hit its 2022 high. Market experts anticipate a wake-up in the bull market with potential interest rate cuts looming.



Read more at Yahoo Finance: Dow, S&P 500 build on records as a retail sales surprise fuels rate cut hopes