Investment Learning

  • September 18, 2024

Fed's Aggressive Rate Cut Signals Focus on Employment

According to Odaily, a research report from China International Capital Corporation (CICC) indicates that the Federal Reserve's recent decision to implement a more aggressive 50 basis point rate cut was unexpected. The monetary policy statement highlighted that recent inflation data has given policymakers increased confidence in achieving the 2% inflation target. This move suggests that the Fed's response function has shifted from focusing solely on inflation to prioritizing employment. The report interprets this as a signal that the Fed has a low tolerance for rising unemployment and that officials are unwilling to jeopardize the prospects of a 'soft landing' for the economy. Based on statements from Fed Chair Jerome Powell, the report suggests that any unemployment rate exceeding 4.4% could trigger further rate cuts. This indicates that the Fed will maintain a dovish stance until labor market data stabilizes. Looking ahead, the likelihood of a soft economic landing in the short term has increased due to the Fed's more substantial rate cuts.

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  • September 18, 2024

Consumer AI revolution should drive Apple higher: Dan Ives

Supply chain conditions and the Federal Reserve's interest rate cut could be setting up a very promising environment for tech stocks to run higher. Wedbush managing director and senior equity analyst Dan Ives joins Market Domination to talk about how the AI revolution is guiding notable tech names, including Apple (AAPL) after it unveiled its iPhone 16 lineup last week. "This is all about as Apple intelligence rolls out into the December quarter into March, that's where I believe this will be the largest Apple iPhone cycle that we've seen. I think markets better digesting it the last few days, but we're going to continue to sort of navigate," Ives tells Yahoo Finance, later adding: "And I just think this is one where the Street is underestimating what the consumer AI revolution is going to mean to Apple stock." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Luke Carberry Mogan.

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  • September 18, 2024

Fed cut allowing homebuyers to 'get off the fence': Brokers

The Federal Reserve cut interest rates by 50 basis points and Chair Jerome Powell said the central bank expects the housing market to normalize alongside rates. Compass Real Estate brokers Tom Postilio and Mickey Conlon join Josh Lipton on Asking for a Trend to discuss what the rate cut means for the US real estate market. Postilio tells Yahoo Finance the real estate industry is “popping the champagne bottle, because for the last three years it's just been a lot of headwinds,” but the “half a point is big news.” “August is typically a very sleepy month, [but this year] it was on fire,” Conlon says, explaining that typically there’s less interest in buying a home during the fall season, especially ahead of a presidential election. “We hit the ground running, and that's all in anticipation of today's announcement,” as it seems people have put aside any election worries aside “because there's so much pent-up demand and there has been for three years” and “this announcement gave [buyers] permission to get off the fence," Conlon states. Postilio finds this increase in demand activity has been “across the board,” but the luxury sector stands out. Compass Real Estate saw the most signed contracts in the week following Labor Day in nearly two decades, he reports. “Low inventory and high interest rates” have been “an absolute disaster for first-time buyers because it's really priced them out of the market,” Conlon notes, indicating that the rate cut could help address alleviate these challenges. For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Naomi Buchanan.

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  • September 18, 2024

S&P 500, Gold Strike All-Time Highs, Small Caps Rally After Fed Slashes Interest Rates For First Time In 4 Years (UPDATED)

Editor’s note: This story has been updated with additional information. Markets are bouncing Wednesday afternoon following the Federal Reserve’s decision to cut rates by 0.5%, marking the beginning of the central bank’s highly anticipated cutting cycle. What To Know: Wednesday’s 0.5% rate cut brings the target fed funds rate to a new range between 4.75% and 5%, down from a 23-year high of 5.25% to 5.5%. It’s also the first rate cut since March 2020. The fed funds rate has been sitting at a range

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  • September 18, 2024

Tech stocks have 'a bit further to go' in 2024: Strategist

Truist co-chief investment officer and chief market strategist Keith Lerner believes tech stocks will run even higher in the fourth quarter, despite seasonal volatility (^VIX) that could persist. Lerner joins Madison Mills and Brad Smith on Morning Brief to examine how the tech sector could see late 2024 gains driven by earnings. "I think partly is that the earnings momentum is still with tech," he says, adding in his view tech stocks have "overextended positioning," so "what you've really been seeing in the last maybe month or two is really kind of getting some of that excess sentiment wrung out from the sector." Tech stocks have "a bit further to go," and "as we get into the earnings season, in a cooling economy, tech on the earnings front still outperforms. He adds "That will drive investors back to tech" because "that's the part of this bull market." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Naomi Buchanan.

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  • September 18, 2024

Federal Reserve Chair Powell Highlights Strong Economy and Commitment to Sustained Growth

According to Odaily, Federal Reserve Chair Jerome Powell emphasized the overall strength of the economy and the commitment to maintaining robust economic development. Today, the Federal Reserve has reduced the extent of its policy tightening. Powell stated that today's decision reflects growing confidence in the sustained strong performance of the labor market. He noted that the labor market has cooled from its previous overheated state. Additionally, consumer spending has shown resilience.

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  • September 18, 2024

Analyst Predicts Economic Soft Landing with Stable Growth and Inflation

According to Odaily, analyst Anst has highlighted that the economic outlook suggests a scenario of a soft landing. Policymakers have projected a median growth rate of 2% for this year, next year, as well as for 2026 and 2027. Inflation is expected to return to target levels by next year, with forecasts indicating it will be at 2.1% by the end of 2025 and 2% in 2026.

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  • September 18, 2024

Federal Reserve Confident in Inflation Progress Towards 2% Target

According to BlockBeats, on September 19, the Federal Reserve released a statement from the Federal Open Market Committee (FOMC) indicating increased confidence in achieving its 2% inflation target. The statement highlighted that the risks to employment and inflation goals are balanced. Economic activity is described as 'steadily' expanding, with a slowdown in job growth and a slight increase in the unemployment rate, which remains low.

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