The financial markets have shown strong performance this year and over the past three years. This growth has been led by equites (stocks), while bonds have finally started to show some signs of adequate returns. Key factors driving this upward trend include a significant boom in the AI sector and a recent cut to the Fed Funds rate. However, slowing economic data and the potential for the impacts of tariffs pose challenges and have created some headwinds.

The question moving forward is what will win out? The market will continue to be propelled by the AI boom (for the near future), further rate cuts, and pro growth policies. This will be countered by tariff impacts as they continue to grow and slowing economic data. Many banks and large financial institutions are predicting slow to moderate growth moving forward, but a clearer picture should arise as more economic data is released through the beginning of next year. In the short term, it is all about the Fed’s decision tomorrow and, more importantly, the guidance Jerome Powell provides moving forward. Author – Kevin McNab

Here is a detailed article from CNBC about what to expect from tomorrow’s meeting: The Federal Reserve is poised to deliver its third straight interest rate cut Wednesday, while simultaneously firing a warning shot about what’s ahead. Following a period of remarkable indecision about which way central bank policymakers would lean, markets have settled on a quarter percentage point reduction. If that’s the case, it will take the Fed’s key interest rate down to a range of 3.5%-3.75%. However, there are complications...Read More!