Even without any interest rate cuts so far in 2024 — and with the likelihood of just one meager rate reduction by the end of the year — the stock market has been purring along.
That’s quite an achievement, given the expectation in January that the Fed would trim rates six or seven times in 2024 — and that interest rates throughout the economy would be much lower by now.
Buoyant as the stock market may seem, when you look closely, it’s apparent that the S&P 500’s recent returns rest on a precarious base.
fever — based on the belief that artificial intelligence is ushering in a new technological age — has been spreading among investors, and that has been enough so far to keep the overall stock market averages rising.
In fact, strip away the biggest companies, especially the tech companies, and overall market performance is unimpressive.
Persons:
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Organizations:
Federal, Nvidia, Microsoft, Apple
Locations:
U.S