However, she says, "There are exceptions to the rising-rate anchor. Bank stocks, for example, generally benefit from rising rates because loan rates often rise much faster than interest-bearing deposit accounts." The spread between deposit and loan rates represents the profit margin on bank loans...
Gina Sanchez, Chantico Global CEO, discusses investment opportunities following a larger-than-expected Fed rate cut. She also recommended Home Depot for its strong dividend yield and McDonald's for its stability and potential demand growth.
While no one can know the definitive reason behind stocks’ negative reaction to what should have been a market-juicing mega rate cut, Rick Rieder, BlackRock’s CIO of Global Fixed Income and Head of the BlackRock Global Allocation Investment Team, touched on one theory. Looking at the Fed’...
Stock Market Looks for Next Fed Rate CutStocks could be in for a bumpy ride as Wall Street tries to guess the outcome of the Federal Reserve's next monetary policy meeting.
UBS managing director and senior portfolio manager Jason Katz explains why the Fed's first interest rate cut will be negative for stocks on 'Varney & Co.' Facebook Twitter Email Copy to clipboard Copy to clipboard Tags WHAT TO WATCH
However, the top-performing sector since July 11 has been utilities, which often rise in the face of interest-rate cuts … but still underperform the broader market. "We forget that the Fed usually saves the day. The Fed has three cut cycles in a row with a big asterisk, but if the ...
The Fed's latest rate cut could have an impact on the gold market, but there are more factors than just rates at play.Getty Images/iStockphoto This week, the Federal Reserve madeits third consecutive interest rate cutof 2024, lowering the federal funds rate by 25 basis points and leaving...
For now, Wall Street seems to have dodged a bullet and the Fed isn't tossing out its script on rate cut plans — at least not yet.
the average interest rate on a 30-year, fixed-rate loan was 7.04%. August's average was nearly three-quarters of a percentage point lower, at 6.31%. That 73-basis-point drop is larger than any anticipated rate cut, but rates may push even lower once the central bankers start chopping....
"We are in a new phase of the process," Fed Chair Jerome Powell said. The central bank has already quickly eased its main interest rate by a full percentage point, to a range of 4.25% to 4.50%, since September. What happened to the stock market today?