Stocks are poised for 'pause and pop' rally as Fed eases policy: CFRA

The Federal Reserve will unleash a"pause and pop" rally in the stock market when policy makers halt their interest rate hikes then shift to cutting down borrowing costs, according to CFRA.

The independent research firm said Monday it believes the Fed's rate hike on February 1 will be the last in its aggressive cycle that started from zero percent last year. Such a move would mark the Federal Open Market Committee's eighth consecutive rate increase and would leave the Fed funds rate at a range of 4.5%-4.75%.

"Historically, the FOMC has started a new rate-easing cycle an average of nine months after the last rate hike. Should history repeat, the FOMC could start cutting rates toward the end of 2023, or early in 2024," Sam Stovall, CFRA's chief investment strategist, said in a note. The nine-month gap between a Fed pause in rate hikes and the first interest rate cut usually results in a gain for the S&P 1500 index, he said. Data that run back to 1995 show 99% of S&P Global sub-industries on the S&P 1500 posted average price increases.

The top-performing sectors have been the financials and real estate groups, rising 22.5% and 20.1%, respectively. Materials and energy also move higher, but at smaller respective paces of 9.3% and 8.3%.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

U.S. stocks open lower as investors brace for Fed meeting, earnings delugeU.S. stocks opened lower on Monday as traders took profits before the Federal Reserve is expected to hike interest rates by 25 basis points. The Dow Jones Industrial Average retreated by 75 points, or 0.2%, to 33,903:
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

Jim Cramer's Investing Club meeting Monday: Dow stocks, Fed, FordInvesting Club: 3 investing lessons from the Club’s meeting Friday: Dow stocks, Fed, Ford
La source: CNBC - 🏆 12. / 72 Lire la suite »

U.S. stocks end lower, Dow snaps six-day win streak as Fed decision loomsU.S. stocks ended lower Monday, with the Dow Jones Industrial Average snapping a six-day win streak, as investors brace for the outcome of the Federal...
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

This week in markets: Bitcoin clings to $23,000 as crypto stocks rallyBitcoin managed to stay above $23,000 while Ethereum fell slightly below $1,600, as crypto stocks generally gained this week.
La source: TheBlock__ - 🏆 464. / 53 Lire la suite »

These stocks reporting earnings this week usually top Wall Street estimates and rallyThere are plenty of stocks with a solid track record of beating earnings expectations and rising on results. Here are few on tap for next week. CNBC your station for rallies and pivots where all news is good news tune in for the truth. 🤣 No article - Advertisement to buy pro news subscription Twitter
La source: CNBC - 🏆 12. / 72 Lire la suite »