August saw a shaky start with an initial sell-off, but it ended on a positive note as markets rallied. Fed Chair Jerome Powell announced it was time to start cutting rates, and stock and bond markets bounced on the news—with the Dow setting a new high and the S&P 500 getting close. The expected rate cuts are based on a slowing economy and the hope that inflation will keep trending downward. Beyond the economy, political risks are expected to rise as the elections get closer.
And as the interest rate cycle remains uncertain, will we see an initial rate cut in September? Stay tuned to my latest Market Thoughts video to find out.