S&P 500 on track for first record close since July

Morgan Stanley Comments on FOMC Action

Morgan Stanley Comments on FOMC Action

The analyst comments "The press conference solidified our views that a string of 25bp cuts from here is the best forecast. The Fed still sees the economy as healthy and labor market as solid, but risks to inflation have come down while risks to the labor market have risen. To show their commitment to not falling behind the curve and confidence in inflation's progress, Powell asserted a large first move was warranted. Powell has stressed and proven with this rate cut that the FOMC is willing to move gradually or make bigger moves... More

ING Comments on FOMC Action

SPDR S&P 500 ETF Trust (NYSE: SPY)

The analyst comments "There was a sense in economist circles that the majority of Fed officials would be reluctant to take such bold action in an environment where the economy is growing at a 2.5-3% rate, equities are at an all-time high, inflation is above target and unemployment is low at just 4.2%. With no... More

TD Cowen Comments on FOMC Action

TD Cowen Comments on FOMC Action

The analyst comments "Federal Reserve Chair Jerome Powell held a press conference today at 2:30 PM ET following the FOMC meeting. We highlight his financial policy comments: Asked about Basel 3 Endgame, Powell said he supports the changes to the capital regime that Fed Vice Chair Michael Barr previewed last week. He emphasized that this is not the final word as the regulators will assess the comments before finalizing the rule in the first half of next year. He also said this is an interagency effort. Powell said there... More

Current CME FedWatch Shows 59% for 475-500bps, 41% for 500-525bps

Current CME FedWatch Shows 59% for 475-500bps, 41% for 500-525bps

Current CME FedWatch Shows 61% for 475-500bps, 39% for 500-525bps

Current FedWatch Shows 61% for 475-500bps, 39% for 500-525bps

What to own in the stock market as volatility returns

With volatility on the rise, Bank of America analysts recommend shifting investment strategies as their US Regime Indicator has moved back into the "Downturn" phase.

According to BofA in a note Tuesday, the key to navigating this market is to "own Quality & Size, avoid Risk."

Historically, small-cap stocks have underperformed large caps during downturns, making quality and size the preferred investment factors.

BofAs research shows that... More

How rate cuts could impact homebuilder stocks

As the market anticipates Federal Reserve rate cuts, Bank of America analysts suggest that homebuilders and building product stocks may have already priced in the expected benefits of lower rates.

In their latest note, BofA analysts highlight that housing sentiment has improved, fueled by the recent decline in 30-year mortgage rates from 7% to roughly 6.2%.

However, they caution that "the stock performance has been... More