Stock Market Faces Uncertainty in 2024 as Investors Rethink Rate Cut Expectations
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Stock market investors face uncertainty in 2024 due to shifting expectations around Fed interest rate cuts and inflation trends.
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Markets seem overly optimistic about the number of rate cuts in 2024, with 6-7 now priced in. This could set up disappointment.
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Recent resilient economic data like strong jobs gains have already dampened expectations for a March 2023 rate cut.
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Markets have often been wrong when betting on Fed dovish pivots. Rate cut expectations may still be too high.
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Treasury yields have back up recently, signaling markets may be acknowledging rate cut expectations went too far. Further inflation/economic updates will steer outlook.