Will Fresh Fed Rate Cuts Lift Stocks?

It will NOT be a simple case of quarterly earnings & revenue “beats” that propel stocks, according to our Chief Equity Strategist and Economist, John Blank. He joins us now to fill in the blanks.

1. Will Future Fed rate cuts be another motivating factor for stocks?

2. What will some others be?

3. You’ve written that bullish traders are looking ahead years not just months to gauge market direction. Are these the fundamental factors they’ll be watching?

4. What will the weaker trader hands be watching?

5. You’ve also written that of particular note is the fact that 9 of 16 Zacks sectors show zero, or negative EPS growth in Q3-25. Why’s that notable?

6. We’ve finally seen a resumption of U.S. monetary easing after a nine-month pause with the quarter point rate cut last week. Will that help investors shrug off any doubts they had about stocks continuing to move higher?

7. Tech stocks had an initial positive reaction to the rate cut. Was that just a knee jerk reaction or will that carry through for a while?

8. There’s some talk that the rate cut will spark activity in the IPO market. What do you think?

9. Two major U.S. tech stocks and one major Mainland China stock include Tenet Healthcare THC, SharkNinja SN and Evercore EVR.

Our Chief Equity Strategist and Economist, John Blank, on what may propel stocks. With John, I’m Terry Ruffolo.

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This article originally published on Zacks Investment Research (zacks.com).

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