The Fed may break a lot of stock-market investors’ hearts next week

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The Fed may break a lot of stock-market investors’ hearts this week:

Clamoring for a rate cut—the first in more than a decade—by the Federal Reserve at some point this year is running hot.

“The Fed might not be prepared to confirm such validations given the hard data do not yet signal a sharp slowdown in economic activity,” she said. The University of Michigan’s consumer-sentiment index came in at 97.9 in early June, down from a seasonally adjusted 100 in May but slightly higher than estimates for 97.3, and a measure of industrial production rose 0.4% in May, representing its strongest monthly rise in six months, helped by increased production of pickup trucks and cars.

Thomas di Galoma, managing director and head of Treasury trading at Seaport Global Holdings, told MarketWatch that bonds and stocks, which have both been rallying on rate-cut expectations could tumble.

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