Is the Pullback Over? Key Charts and Levels That Suggest Not Yet
Investors got bullish signals, as Fed Chair Jerome indicated that central bank policymakers are open to at their meeting next month, though perhaps not as aggressively as some had hoped. Lower rates should help sustain the market’s summertime rally, especially after recent weakness in the jobs market and worries about AI spending had slowed the bulls.
Powell told the conference that “the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” signaling that rates could be cut as soon as September. This would mark nine months since the Federal Reserve’s last rate cut.
Historically, such pauses have been good for stocks. When the Fed has waited 5 to 12 months between rate cuts, the market was higher a year later in 10 out of 11 instances.
Regarding the pullback that started…
