Investing.com -- Stocks could see some short-term volatility after the Federal Reserve rolls out an expected interest rate cut on Wednesday several interest rate cuts in the coming months, but the wider trajectory of equities will likely be more impacted by upcoming economic data, according to analysts at Barclays.
"With a lot of dovishness arguably in the price now , the Fed's decision and its communication about the rates trajectory will likely impact short-term cross-asset volatility," the Barclays analysts said in a note to clients on Wednesday. The analysts added that it will likely be"some time" before investors will know for certain if the economy has avoided a recession, placing extra importance on data in the months to come."We find that a reliable and timely indicator of a recession is jobless claims, which so far remain well behaved," the analysts said.