"With the Federal Reserve reducing interest rates by an unsurprising 25 bps on Wednesday, we've officially entered the next cycle of rate cuts. Indeed, lingering inflation has been a thorn in the side of consumers for many years now, but with Fed Chairman Powell sounding less concerned about price increases than at the start of the year, it seems like the path is set for a few more cuts before the year comes to a close."
"With a quarter-point rate cut in the books and a signal for two more before 2025 concludes, the market seems mostly upbeat. Though, there was a very temporary intraday upset that dip-buyers were quick to take advantage of. Either way, I think the lack of surprises during the rate decision is a green light for stocks to continue marching higher."
The Federal Reserve reduced interest rates by 25 basis points, initiating a new rate-cut cycle and signaling additional cuts before 2025 as inflation concerns eased. The market reacted mostly positively, with a brief intraday dip that buyers quickly seized and the lack of surprises encouraging further stock gains. Declining rates combined with AI-driven growth could accelerate a healthy bull market, even amid frothier valuations for some leaders. Several stocks remain attractive values after the rate move. Lennar, a major homebuilder, stands to benefit from lower mortgage rates and reduced borrowing costs; shares trade at about 11.0 times trailing P/E and yield 1.5%.
Read at 24/7 Wall St.
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