Rates are Moving Down. Is the Market Moving Up?

The long-expected lowering of interest rates began this week when Federal Reserve dropped the rate by half a point (September 18, 2024). The markets have been volatile but resilient this year. The Dow was up 10 percent in mid-September after gaining nearly 14 points in 2023. The S&P gained 18 in mid-September after a 24 percent sprint in 2023. The initial market reaction after the rate change was a jump to record territory in the major indices.

The economy remains strong although hiring has slowed and credit card and car payments have fallen behind, causing concern that a recession is still possible.

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