With a potentially negative earnings season looming, investors see easy Fed policy as the security blanket the stock market needs as it breaks to new highs.
sourced from China, but the increases were not enough to offset rising costs.
Emanuel said cyclical parts of the market could benefit more from lower interest rates, including energy and financials. Just the recent rise in long term rates, shows that the market believes the Fed will succeed in fending off a recession, Emanuel said. The Fed's anticipated rate cut is unusual in that it comes at a time of very low unemployment and an economy that is growing at trend of about 2%. The economy added a surprisingly strong 224,000 jobs in June, and there was an unexpected pickup in consumer inflation, with core CPI rising at a 2.1% pace year over year, one of the highest readings during the recovery.
But there is a risk from too easy central bank policy, and some investors are worried about the Fed creating a bubble.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dow, S&P 500 look to set new records after Powell boosts expectations for Fed rate cutStocks rise Thursday, attempting to build on gains scored a day earlier after Federal Reserve Chairman Jerome Powell reinforced expectations for a rate cut...
Read more »
Dow futures slightly lower ahead of Fed Chair Powell's testimonyFederal Reserve Chairman Jerome Powell is likely to keep the markets guessing about how soon and how deep the Fed intends to trim rates.
Read more »
Dow futures slightly higher after Fed chief signals a rate cutU.S. stock index futures were slightly higher on Thursday morning, on the back of fresh comments by Fed Chairman Jerome Powell.
Read more »
Fed-funds futures traders now see 16% chance of half-point cut by Fed in JulyFed-funds futures traders on Wednesday increased bets on a half-point cut in interest rates by the Federal Reserve at the end of the month, according to CME...
Read more »
Stock rise after dovish testimony by Fed Chairman PowellStocks shake off pre-market losses to rise early Wednesday, after the release of testimony by Federal Reserve Chairman Jerome Powell, before Congress
Read more »