Fed cuts rates by quarter point as shutdown data blackout clouds outlook https://t.co/2IuaEktfmH ...

Group 1: Profit Margins and Earnings Growth - Analysts expect profit margins to expand in 2026, driven by factors such as operating leverage, efficiency gains, and cost-cutting measures [3][4][7] - EPS is projected to grow about 10% to $298 in 2026, with net margins increasing by 40 basis points to 13.2% [2] - Companies are focusing on tariff mitigation strategies to bolster profit margins, indicating a proactive approach to managing costs [4][9] Group 2: Economic Outlook - The U.S. economy is expected to continue expanding into 2026, although job growth is slowing, which may limit wage growth [1][6] - The Federal Reserve has cut interest rates, signaling a shift in focus towards supporting the labor market while managing inflation [10][11] - Retail sales have shown positive growth, with a 0.6% increase in August to a record $732 billion, indicating strong consumer demand [11][12] Group 3: Market Sentiment and Stock Performance - There is a growing sentiment among investors to discuss 2026, as market participants shift focus towards future earnings potential [5][6] - Despite cooling economic growth, the long-term outlook for the stock market remains favorable, supported by expectations for continued earnings growth [20][21] - Companies have adjusted their cost structures significantly since the pandemic, leading to positive operating leverage that translates modest sales growth into robust earnings growth [24]

Market Reaction to Fed Rate Cut - Treasury market experienced volatility, with the 10-year yield initially dropping below 4% following the rate cut decision, then rising to 4116% [2] - Market's upward yield adjustment is attributed to strong jobless claims data and a reassessment of the support for further rate cuts [2][3] Fed's Policy and Economic Outlook - The Fed's rate cut is viewed as a risk management measure, prioritizing employment risks over inflation risks [4] - The Fed is perceived to be placing greater emphasis on the employment side of its mandate compared to inflation [4][6] - The Fed is projected to miss its inflation target for seven consecutive years, with inflation exceeding the target by more than 50 basis points (05%) in six of those years [7] Risks and Concerns - The primary risk to the economy is on the employment side, with concerns about companies transitioning from hiring hesitancy to layoffs [5] - There are concerns about the potential for a "cliff effect" if companies begin firing employees, which could spread through the economy [5]

When the Fed cuts rates, the US housing market transaction volume will start to return.Powell can resurrect the entire market by simply cutting aggressively. ...

Let's assume for the moment that the Fed funds futures are correct and there's a 100% chance the Fed will cut rates tomorrow by at least a quarter of a point to four and four and a quarter%. We've talked a lot about which stocks and sectors stand to benefit from a Fed easing. But which could stumble.Today barons put a fine point on one name in particular and it may surprise you. In an article entitled Bergkshire Hathaway could see a big hit if the Fed slashes rates here's how much. Baron says because Warren ...

The US economy has succeeded this year despite the Fed working against it.Imagine what happens when the Fed cuts rates this week… ...