Rate-Cut Bonanza Keeps Markets at Record Highs

Group 1 - Market participants are anticipating interest rate cuts, with expectations rising from zero cuts to 2-3 cuts for 2025, including a potential 50 basis-point cut [1] - Mortgage lenders like Rocket Companies (RKT) have seen a +7.4% increase, while homebuilders Pulte Home (PHM) and Lennar (LEN) are up +5%, indicating strong interest in the new interest rate environment [2] - The Russell 2000 index has increased by +4.3% over the past two sessions, benefiting small banks and insurance companies from lower interest rates [2] Group 2 - Cisco Systems (CSCO) reported fiscal Q4 earnings of 99 cents per share, exceeding the Zacks consensus by 2 cents and showing a +7.6% year-over-year revenue increase to $14.67 billion [3][4] - Cisco's guidance for the current quarter is slightly raised, with the high-end of the Q1 earnings range remaining flat at 99 cents per share, and shares are up +18.7% year to date [4] Group 3 - Upcoming economic indicators include Weekly Jobless Claims expected to remain below 230K and Continuing Claims anticipated to stay under 2 million [5] - The Producer Price Index (PPI) is projected to rise to +0.2% on the headline and +0.3% on the core, which are manageable increases for the market [6]