Will a Goldilocks Economy Keep the Stock Market Humming?

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Stocks Analysis by James Picerno covering: S&P 500. Read James Picerno's latest article on Investing.com

flatlines from current levels through Dec. 31, 2024, the market would still go into the history books as delivering yet another strong year on the basis of an 18.1% year-to-date rise through Monday . But the best may be yet to come, some Wall Street firms predict.“Expectations of a ‘soft landing’ for the economy and growing odds the Federal Reserve will cut interest rates this year.”

Meanwhile, Fed funds futures are pricing in a series of rate cuts in the months ahead. The crowd is confident that the Federal Reserve will start trimming its target rate at the Sep. 18 FOMC meeting.“We didn’t gain any additional confidence in the first quarter, but the three readings in the second quarter, including the one from last week, do add somewhat to confidence” that inflation is trending closer to the Fed’s 2% target.

Meanwhile, optimism prevails and the market action remains bullish. When that changes, it’ll be obvious trend metrics. The only thing we know for sure is that the turning point didn’t start on Monday.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.

 

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