Market still thinks the Fed needs to cut: Kenny Polcari | Fox Business Video

In a recent commentary, Kenny Polcari, chief market strategist at Slatestone Wealth, discussed the market's ongoing belief that the Federal Reserve will need to cut interest rates. He referenced comments made by the acting labor secretary regarding the labor market and future economic conditions. This suggests a sentiment that the current economic indicators may compel the Fed to adjust its monetary policy in favor of rate reductions.

Read full article

Stock Forecasts

XLFView XLF chart on TradingView

Positive

Given the market's expectation of potential Fed rate cuts, financial stocks might come under pressure as lower interest rates typically compress margins. However, sectors such as utilities or consumer staples may benefit as lower rates can lead to higher valuations. Overall, lower rates tend to be favorable for growth-oriented stocks.

JPMView JPM chart on TradingView

Negative

The anticipation of Fed rate cuts could indicate a slowdown in economic growth, which might negatively impact sectors like financials that thrive in a higher interest rate environment. As a result, stocks linked to financial services may experience bearish trends.

Related News

JPMorgan touts 'soft landing' possibility after better-than-feared earnings

Oct 11, 2024, 11:03 AM

Profits at JPMorgan and Wells Fargo both fell from the year-ago period, but those declines were less than what analysts expected.

JPM
XLF

Stock market today: Stocks rise amid big bank earnings, inflation data

Oct 11, 2024, 10:21 AM

JPMorgan and Wells Fargo get earnings season going in earnest while a wholesale inflation print is in focus after the CPI surprise.

XLF
SPY

Big Banks Open Their Books for First Test After Rate Cuts

Oct 11, 2024, 8:11 AM

Profits fell at JPMorgan and Wells Fargo, but the lenders reported results that were largely better than had been expected, a sign that the economy remained solid.

JPM
WFC