Mirage.
Interest rate cuts are beginning to look like a mirage; the closer we seem to get to them the more they seem to recede into the distance. By the end of last week, the most likely Fed interest rate at the end of the year according to futures markets was 5.125% (see FEDWATCH INTEREST RATE TOOL below). With Fed Funds currently sitting at 5.375%, this now implies just one solitary Fed rate cut of 0.25% between here and New Year’s Eve.
As a result, stocks fell for the third straight week and tech-heavy NASDAQ stocks in particular were brutalized, suffering their biggest weekly decline in 17…
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