On Monday, Apple (AAPL) held an iPhone, AirPods, and Watch announcement. The S&P 500 (SPY) index added Palantir (PLTR) and Dell Technologies (DELL) to the index. Speculators decided that the stock market fell enough.
Is the one-day rebound a head-fake that is luring investors to buy stocks on its way down?
On Wednesday, the U.S. inflation report will likely show that prices moderated. Even though it will not meet the Federal Reserve’s 2.0% target, traders advanced markets on the day. The data should add to the Fed’s case in cutting interest rates by 25 bps. In addition, the central bank may go further by adding another rate cut to its forecast in 2024. That would set up more rate cuts in 2025.
Bank stocks and bonds benefit from lower rates. JPMorgan Chase (JPM) added 2.05% on Monday. Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C) also bounced back.
Among the treasury bond ETFs, look at the 20-year (TLT). TLT stock closed at $99.99.
Consumer discretionary stocks will perform well when the central bank stimulates the economy. Look at stocks like Lennar (LEN), Royal Caribbean (RCL), and Amazon (AMZN).
In the political world tonight, U.S. presidential candidates Kamala Harris and Donald Trump will hold their first debate.
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