Reported 7 months ago
Signs of decreasing US inflation and expectations of Federal Reserve interest rate cuts are seen as positive for parts of the stock market that have not performed well in the current rally, led by Big Tech. The potential for lower rates following benign consumer price data has lifted the S&P 500 to new highs, with hopes that this could benefit small caps and financial sectors hit by higher rates. While tech giants have been driving stock gains, a shift in market dynamics could lead to a broader performance if rate cuts occur, enhancing areas that are rate-sensitive but have not seen as much growth.
Source: YAHOO