Who needs Fed rate cuts? Stocks can rally without them, Wall Street bulls say
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Robust global economic growth may support a stock market rally even without Federal Reserve rate cuts. The S&P 500 Index had its best week since November, pushing it back toward record levels. Investors are debating whether the recent weakness in the market was just a blip or if delayed policy easing will bring it down again. Some investors believe that the market can follow the playbook of the 1990s, when equities tripled in value despite rates hovering around current levels. The strong economic growth during that time provided a platform for stocks to shine. While the global outlook is uncertain, there is enough momentum to push the stock market forward. Traders' anticipation of multiple Fed rate cuts this year has been pared back to only one, which could support the rally in equity markets. Confidence in the global economy has strengthened, backed by US growth and signs of a rebound in China. Short-term pullbacks in the S&P 500 are seen as healthy, and historical data shows that the index tends to perform well when 10-year Treasury yields are higher. Early results from the current reporting season suggest that US companies are outperforming expectations, and analysts expect S&P 500 profits to jump in the coming years. A booming economy will continue to support stocks even without rate cuts, but stagflation would be a danger.

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https://fortune.com/2024/04/28/stock-market-outlook-fed-rate-cuts-sp500-rally-earnings/