Bank Of America Sticks To December Rate Cut Prediction, Braces For Election-Fueled S&P 500 Turbulence
Portfolio Pulse from Piero Cingari
Bank of America analysts predict a December rate cut by the Federal Reserve, diverging from the majority who expect a September move. They foresee near-term S&P 500 volatility due to election uncertainty but recommend large-cap value stocks in cyclical sectors. The 'Other 493' companies in the S&P 500 are expected to show earnings growth, while mega-cap tech companies may decelerate.
July 17, 2024 | 3:46 pm
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The Roundhill Magnificent Seven ETF (MAGS) may face headwinds as Bank of America analysts predict earnings growth for the 'Other 493' companies in the S&P 500, while mega-cap tech companies, which MAGS tracks, are expected to decelerate.
Bank of America analysts highlight a shift in earnings growth from mega-cap tech companies to the 'Other 493' companies in the S&P 500. This could negatively impact MAGS, which tracks the performance of the 'Magnificent 7' mega-cap tech companies.
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IMPORTANCE 70
RELEVANCE 80