This is the Market Wrap recap. The US Federal Reserve cut short-term federal fund rates by 50 basis points last month. Risk assets rallied following the move, with further interest rate cuts priced in over the coming year. With unemployment steadily Rising, inflation softening, and GDP growth weakening, the FED felt it was necessary to cut by double the standard 25 basis points. However, Powell reiterated that the economy remains fairly robust. Whether the US economy sticks a soft Landing or not is anyone’s guess. Market volatility could Spike around election time, although it will remain focused on corporate earnings. EPS expectations are as high as our Equity markets, so it will be important for S&P 500 companies to meet expectations in order to keep this great bold Market moving in the right direction.
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