For the third quarter, the S & P 500 has popped 4.7%, while the Dow is higher by 7.7%.
"The bond market has the fed funds rate being cut below 3% in 2025," Johnston, the firm's head of derivatives and cross asset strategy, wrote in a note Monday.
On Monday, S & P Global said its U.S. manufacturing purchasing managers' index fell to a 15-month low in September — while its services sector gauge showed expansion.
He likes put spreads on the SPDR S & P 500 ETF Trust (SPY) expiring Oct. 31.
If history is any guide, it'll most likely be the bond market.
Persons:
Cantor Fitzgerald's Eric Johnston, Johnston
Organizations:
Dow Jones, Federal Reserve, Dow, P Global, Trust
Locations:
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