Wilmington Trust's Meghan Shue: In the short-term, some volatility & pullback is healthy development

Market Overview - Major indices are attempting to rebound after experiencing back-to-back weekly losses, raising the question of whether this presents a buying opportunity [1] - The market has seen a strong six-month run, particularly in high momentum and higher beta stocks, but some of the best performers are now dragging the market down [3] Federal Reserve and Interest Rates - Stability in the market may require reassurance regarding potential Federal Reserve rate cuts, with expectations for a cut in December and three additional cuts in 2026 to reach a neutral rate of approximately 3% by mid-year [3][4] - The impact of rate cuts on job stability and layoffs, particularly in the context of technological advancements like AI, is a concern [6][8] Employment and Economic Conditions - There is a noted two-speed economy, with small businesses experiencing job cuts in five out of the last six months, indicating a need for stabilization in the job market [5] - Current job weakness may be influenced by AI and technological innovation, but attributing all job losses to AI is considered premature [7] - The focus is on stabilizing jobs at a low level rather than expecting a resurgence, which could lead to higher volatility in the market [9]