Fed Will Cut Interest Rates — But When? Most Investors Agree It Won't Be July, Bank Of America Says
Portfolio Pulse from Anthony Noto
Bank of America's survey indicates that most investors expect the Federal Reserve to cut interest rates at least twice in the next year, with the majority predicting cuts in 2024. The Fed's decisions on interest rates significantly impact the economy and stock market.
June 18, 2024 | 4:20 pm
News sentiment analysis
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POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) saw a slight increase of 0.075% as investors anticipate future rate cuts by the Federal Reserve.
The anticipation of rate cuts generally boosts investor sentiment, leading to a positive impact on the stock market, including SPY.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) increased by 0.52% as investors expect the Federal Reserve to cut interest rates in the near future.
Expectations of rate cuts typically lead to higher bond prices, positively impacting TLT.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80