Stocks Face Uncertainty as Fed Weighs Rate Cuts Amid Mixed Economic Signals
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The bull market needs weaker economic data to justify the Fed's pivot to lower interest rates, which would support higher stock prices.
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Without rate cuts, higher borrowing costs could eventually dent consumer spending, although debt levels are relatively low.
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The Fed has room to cut rates significantly, which could limit equity downside even in a recession.
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A resurgence in bond yields poses a risk to stocks given the resilient economy.
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Investors can hide in energy stocks, but further tech gains are needed to power the overall market higher if the economy defies expectations.