Gundlach Says Base Case Seems Like One Rate Cut This Year, Don't See It Coming In June
Portfolio Pulse from Benzinga Newsdesk
In a CNBC interview, Gundlach mentioned that his base case scenario involves expecting one rate cut this year, but he does not anticipate it happening in June.
May 01, 2024 | 7:25 pm
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POSITIVE IMPACT
Gundlach's prediction of a potential rate cut could influence investor sentiment towards SPY, as it tracks the performance of the S&P 500, which is sensitive to interest rate changes.
Interest rate cuts generally lead to higher equity prices as they reduce the cost of borrowing and can stimulate economic growth. Gundlach's prediction, if taken seriously by the market, could lead to increased optimism among investors about future economic conditions, potentially boosting the S&P 500 and, by extension, SPY.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75