Wall Street Expects Half-Point Fed Rate Cut

Published On Sep 18, 2024, 5:04 AM

The stock market is experiencing a rally with the S&P 500 nearing record highs, largely due to increasing expectations that the Federal Reserve will cut interest rates by half a percentage point. This optimism has also boosted other indices like the Nasdaq and Russell 2000, with gains attributed to hopes for lower borrowing costs and increased values of investments. However, caution exists among some investors, especially as recent gains are led by defensive sectors such as real estate and utilities. There are differing opinions on the necessity of a significant rate cut, with some arguing that the economy remains solid.