Eddie Ghabour, co-founder of Key Advisors Wealth Management, discussed how a decision by the Federal Reserve to cut interest rates outside of a recession would be very bullish for the markets. He suggests that such a move might indicate confidence in economic conditions and could lead to a positive market response.
Positive
A Fed rate cut is typically seen as positive for growth stocks and sectors that benefit from lower borrowing costs, such as technology and consumer discretionary. This may lead to increased liquidity in the markets and potentially higher stock prices.
Negative
Financial stocks like those of banks may face initial headwinds from rate cuts as they tend to earn less on loans. However, if the economy strengthens due to lower rates, they could recover over the longer term.
Capitalist Pig hedge fund manager Jonathan Hoenig weighs in on market rallies, his concern for everyday Americans amid inflation, and his stock pick.
Oct 11, 2024, 12:25 PM
JPMorgan Chase & Co. chief Jamie Dimon on Friday sounded the alarm about "critical risks" to the U.S. economy in the bank's third quarter earnings report.
Slatestone Wealth Chief Market Strategist Kenny Polcari discusses the market rallying following the inflation report, Jamie Dimon's warning of geopolitical risks, and how he fared during Hurricane Milton.