The Fed on Wednesday lowered interest rates, marking the first rate cut since March 2020.
A decline in interest rates should, theoretically, mean good news for the stock market.
The Fed likely won’t take rates lower as aggressively as they were raised, unless the economy takes a downturn and necessitates loose economic conditions.
While mortgage rates and bond yields have begun drifting lower, companies and consumers still might not feel the effects of lower rates right away.
But investors with outsized positions in Big Tech stocks should eye beaten-down areas of the market that benefit from lower interest rates, says Diton.
Persons:
Dow, Jerome Powell, ”, Jeff Buchbinder, Powell, Eric Diton
Organizations:
New, New York CNN, Federal, Fed, Nasdaq, LPL, Wealth Alliance, Tech, Meta, Apple, Big
Locations:
New York, Big Tech