Stocks Hit Milestone as Rate Cuts Loom Later This Year
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Stocks raced past a milestone despite interest rate cuts likely coming later than expected. The Fed signals it won't cut rates in March but likely in May or June.
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Delayed rate cuts mean money on the sidelines will likely rotate into stocks as yields on short-term securities fall when the Fed cuts rates.
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Small-cap stocks and dividend payers in healthcare and industrials are attractive if economic growth continues and inflation falls.
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CEO confidence is rebounding on economic optimism, but political uncertainty around the 2024 election tops business challenges this year.
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Key economic data being released next week includes CPI, retail sales, housing market index, and consumer sentiment.