QQQ - The Fed Is More Dovish Than The Market Anticipates
2024-03-21 08:30:00 ET
Summary
- The Fed is more dovish than expected, signaling a potential rate cut and the possibility of new rounds of quantitative easing.
- Market expectations have shifted towards a rate cut in June, with a possibility of two rate cuts by the end of July.
- The S&P 500 futures reached new all-time highs in response to the renewed dovishness, and the market outlook remains positive with a raised year-end target range for the SPX.
I recently published a note about the Fed potentially triggering a correction due to overheating technical conditions and its recent tilt toward more hawkish rhetoric. Well, the Fed has "spoken," and despite the (likely) transitory uptick in several inflation gauges, the central bank still expects to carry out three rate cuts before the year ends. This dynamic implies that the Fed is more dovish than the market recently had priced in. ...
The Fed Is More Dovish Than The Market Anticipates