ACTV - The Next Fed Meeting And The Potential Impact On 2024 Equity Returns

2024-04-23 10:37:17 ET

Summary

• I expect the Federal Reserve's upcoming FOMC meeting to have a significant impact on the equity market and stock prices.
• I don't expect an interest rate cut at the meeting and see a possibility for higher 10-year rates in the next 1~2 years.
• Based on rate expectations and valuation levels, I see a gloomy return profile for the S&P 500 index in 2024 with more downside potential than upside.
• Similar downward projections apply to the Dow Jones Industrial Average and Nasdaq 100 Index too.

Federal Reserve’s April/May meeting

The next key market event on our calendar is the FOMC meeting (the Federal Open Market Committee). It will be held on Tuesday, April 30 and Wednesday, May 1, 2024, according to the Federal Reserve Board’s meeting calendars. These FOMC meetings are important for the overall equity market because the Fed is responsible for setting monetary policies in the United States, with implications for the global market. By setting rate expectations and deciding if/how much the Fed will buy or sell U.S. Treasury securities, these meetings could have a large influence on stock prices....

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