Nvidia is a hot topic this week. However, the next major catalyst for Wall Street is just around the corner. The Federal Reserve is scheduled to hold its next monetary policy meeting in September. Market consensus is that the Fed will cut interest rates by at least a quarter of a percentage point, according to CME Group’s FedWatch tool. Investors have been calling on central banks to lower interest rates as worries about slowing economic growth and easing inflation permeate Wall Street. Recession fears have eased, but the Federal Reserve is still expected to cut interest rates. This could be a recipe for strong market gains. Barclays noted that in the six months following the first rate cut in the easing cycle, the S&P 500 returned an average of more than 5%. After one year, those returns will expand to nearly 10%. Stefano Pascale, global derivatives strategist, wrote: “Historically, in the absence of a recession, U.S. stocks have staged an impressive rally when a tapering cycle begins, and barring any surprises in the short term, this will That should be the case on Friday, when investors look to July’s personal consumption expenditures price index reading for their next clue about the future path of monetary policy. Hogan believes the Fed will definitely continue with its rate cuts in September, saying in a recent interview with CNBC: “They have turned a new page for us and made that clear through Chairman Powell’s speech in Jackson Hole. a little. “So if markets continue to move higher but inflation continues to move lower, we are very confident that the Fed will cut rates on September 18th and likely continue to do so over the next 18 months.” “
