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Fed could cut three times in 2024: Strategist
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June's existing home sales data disappointed expectations, showing a 5.4% month-over-month decline. Kristina Hooper, Invesco's chief global market strategist, joins Catalysts to discuss her outlook on the Federal Reserve and market trends.
Hooper attributes the housing market's challenges to the Fed's tightening cycle, which she says created "golden handcuffs" and forced affordability issues. However, she believes the Fed recognizes these housing market concerns. Looking ahead, Hooper is optimistic about the possibility of two rate cuts in 2024, even suggesting "there is a potential for three."
Addressing the ongoing rotation in the tech sector, Hooper states, "I think this is very much a Fed trade." She explains that investors are anticipating Fed rate cuts, which could prevent a downturn and lead to re-acceleration. Consequently, "the most cyclically sensitive parts of the stock market... are performing very well."
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Hooper attributes the housing market's challenges to the Fed's tightening cycle, which she says created "golden handcuffs" and forced affordability issues. However, she believes the Fed recognizes these housing market concerns. Looking ahead, Hooper is optimistic about the possibility of two rate cuts in 2024, even suggesting "there is a potential for three."
Addressing the ongoing rotation in the tech sector, Hooper states, "I think this is very much a Fed trade." She explains that investors are anticipating Fed rate cuts, which could prevent a downturn and lead to re-acceleration. Consequently, "the most cyclically sensitive parts of the stock market... are performing very well."
#news #youtube #stockmarket
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
- Follow Yahoo Finance on social:
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