Data to take precedence over Fed cuts for stocks, says Morgan Stanley

Despite the anticipated Fed rate cuts, the focus for stock markets over the next several months will be on labor and growth data rather than the magnitude of the rate cuts themselves, Morgan Stanley strategists said in a Monday note.

In contrast, considering the uncertainty priced into the bond market around the size of this first-rate cut, the worst short-term scenario for equities would involve a sharp negative price reaction following the FOMC meeting. Moreover, while value stocks often outperform heading into a rate cut, growth stocks tend to take the lead afterward. At the index level, returns following the first Fed rate cut have been mixed.

France Dernières Nouvelles, France 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.

Morgan Stanley sees renewable stock rallying 50% on data center demand from tech industryThe case remains strong that load growth from data centers will be met in large part from renewables and batteries, according to Morgan Stanley.
La source: CNBC - 🏆 12. / 72 Lire la suite »