Market needs reassurance to go higher: BlackRock strategist

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Kate Moore Nouvelles

Labor Market,Equity Market,Earnings Growth

After the Federal Reserve kicked off its rate-cutting-cycle sending the market (^DJI,^GSPC, ^IXIC) higher, Kate Moore, BlackRock’s global allocation fund...

Moore tells Yahoo Finance that there are three things that the equity market is looking for to catalyze new growth: earnings, payrolls, and macro policy. “This is a really important story in the third quarter. Not because the actual earnings growth is going to move the market, but because there was a big disconnect in the second quarter between revenue growth and the bottom line, companies were having to pull a lot of levers and do a lot of things to deliver on the bottom line.

She says while major indexes have climbed to fresh record highs after the rate cuts, it doesn’t feel “super inspired. It's on not particularly high volumes.” But the determination about where we go from a policy perspective, um will really come from, you know, whether or not there's a deterioration in the labor market.And then third of course, is this kind of back and forth on policy, what I'm calling like macro political.Yeah, there was just a, a CFO survey that the Fed put out today, um where they said something like 30% of companies are waiting to spend until after the election.

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