The Stock Market Could Rise or Fall Sharply Tomorrow (Nov. 27). Here's Why

The S&P 500 (SNPINDEX: ^GSPC) has rocketed 25% in 2024, putting the broad-based index on pace for one of its strongest annual performances of the 21st century. Factors contributing to that upside include enthusiasm about artificial intelligence, strong corporate earnings, and encouraging economic data.The Federal Reserve's recent pivot to interest rate cuts has also bolstered investor sentiment. Policymakers raised the federal funds rate at the fastest pace in decades to stamp out fierce inflation post-pandemic. That benchmark interest rate ultimately reached its highest level in two decades before the Federal Reserve shifted to rate cuts in September 2024.Lower interest rates stimulate the economy by encouraging consumer spending and businesses investments. Policymakers have already cut rates by three-quarters of a percentage point, and the market anticipates another quarter-point cut when the Federal Open Market Committee meets in December, according to CME Group's FedWatch tool.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool