Reported 4 months ago
Bob Elliott of Unlimited notes that Fed officials are leaning towards a "wait and see" approach, suggesting that the central bank is likely to pause and gather more information before making significant policy moves due to the current healthy state of the economy. This indicates that a rate cut cycle is unlikely to occur this year, with most Fed officials emphasizing a theme of "wait and see" according to Elliott. The stock market is facing downward pressure from higher interest rates, but despite market participants expecting the Fed to cut rates, stocks are relatively indifferent to Fed actions, with the market being driven more by bond market movements. Additionally, the trend of a few large tech stocks influencing the market significantly raises questions about the sustainability of the market's record highs, with expectations of 17% earnings growth challenging to meet without these tech giants. Elliott suggests that the financial sector may offer opportunities for investment given the current market landscape.
Source: YAHOO