I hope everyone had a great weekend and happy first day of fall!
Markets finished at new record highs last week as the Fed delivered their highly anticipated .25% interest rate cut. The median expectation is for two more cuts in 2025 though there is dispersion among the nineteen Fed officials. My feeling is we have entered an interest rate cutting cycle at a time when economic growth remains robust and earnings are solid. My hope is upcoming commentary from the Fed doesn’t directly signal a “green light” allowing a more sustained grind higher for markets should economic data support it. I would not be surprised if we see a near-term pull-back given the record high run of late but I would anticipate this to be short-lived. With the Fed indicating they are focusing more on employment as opposed to pricing pressures, I look to the September payrolls data (released next Friday the 3rd) as the next big catalyst for the market. All things considered, I continue to like quality value within equities as I anticipate this market will continue to broaden out as rates come down.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management.
Have a great week!