Here’s what investors want even more than a Fed interest-rate cut this week
View original at finance.yahoo.comHere’s what investors want even more than a Fed interest-rate cut this week Interest-rate cuts can act as a tailwind for stocks, but the market is showing it’ll be “just fine” without them, one investment strategist said…
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The most dangerous time to trade is between 2 and 2:30 p.m. Eastern time on Fed days
80% confidenceThere is little reason for the Fed to cut rates right now, especially after cuts at each of the last three meetings
80% confidenceStock-market volatility could come soon after the next Fed chair takes office midyear, as the market starts to get used to the tone and direction of a new chair
80% confidenceExpectations for more rate cuts later in the year aren't what's driving markets right now
80% confidenceInvestors are 97% certain that the Fed will hold rates where they are at the January 2026 meeting
80% confidenceExpects Jerome Powell to tread carefully around the topic of the ongoing investigation during his press conference
80% confidenceEarnings growth for the rest of the S&P 500 will catch up to the Magnificent Seven stocks in 2026
80% confidenceThe market doesn't need a cut and can be just fine without a cut for the early part of 2026
80% confidenceInvestors are optimistic the broadening out in the market will continue, and for other sectors to pull some weight as far as returns go
80% confidenceGDP growth could be better than expected, and valuations could expand modestly if profit margins surprise to the upside
80% confidenceThe market has been trained to listen closely and hang on every word of Jerome Powell
80% confidenceInvestors would be better served by tuning out some of the noise from Fed announcements
80% confidenceLower rates are a tailwind, but not a precondition for markets to go higher
80% confidenceThere are other groups that provide economic projections that are just as accurate as the Fed, but investors give extra weight to the central bank because of the Fed's authority
80% confidence
