Bank Of America Predicts First Rate Cut In December: 'Higher-For-Longer Flavor'
Portfolio Pulse from Piero Cingari
Bank of America predicts the first rate cut in December, with a 'higher-for-longer' rates environment. The bank expects a gradual economic slowdown and persistent inflation, with the S&P 500 ending the year slightly lower and gold prices rising.
June 21, 2024 | 2:25 pm
News sentiment analysis
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POSITIVE IMPACT
Bank of America is bullish on gold, with the SPDR Gold Trust (GLD) expected to reach $2,500 per ounce by year-end, a nearly 6% increase from current levels.
Persistent inflation and economic uncertainties are likely to drive investors towards gold, leading to a price increase.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Bank of America expects the S&P 500, tracked by SPDR S&P 500 ETF Trust (SPY), to end the year at 5,400 points, marginally lower than current levels.
The forecasted economic slowdown and persistent inflation are likely to weigh on the S&P 500, leading to a marginal decline by year-end.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80