Investing.com — The much-anticipated Santa rally seems set to continue, driven by a combination of “Goldilocks” economic data, supportive Federal Reserve policies, and solid earnings results, according to Sevens Research.
Key economic indicators released last week offered a balanced view of growth and stability, according to the firm.
They noted that the ISM Manufacturing PMI improved, signaling reduced contraction, while the Services PMI cooled slightly to mitigate fears of economic overheating.
Meanwhile, the latest jobs report highlighted steady labor market growth, with around 150,000 jobs added per month in October and November.
The Federal Reserve remains committed to easing monetary policy, with Sevens stating that commentary confirmed the likelihood of a 25-basis-point rate cut in December.
They added that corporate earnings, particularly from tech and consumer sectors, further buoyed sentiment with solid results. This trifecta of growth, falling rates, and stable earnings has propelled the to new heights, now above 6,000.
Looking ahead, the “clear path” for the rally into year-end could face challenges in early 2025, says Sevens.
The “optimistic set up has, as…
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