Jefferies Says Stocks Can Rally Even If Fed Doesn’t Cut Rates

 

• Quantitative easing’s ‘stimulative vestiges’ are here: Zervos
• Risk assets to resume move up on strong economic data, he says

Traders spooked by Wednesday’s hotter-than-expected inflation print need not to worry, according to Jefferies’ David Zervos, who says risk assets can thrive with or without interest rate cuts by the Federal Reserve.

The S&P 500 Index dropped more than 1% Wednesday after the latest consumer price index topped economists’ forecasts, renewing concerns that the Fed will delay any cuts. The technology-heavy Nasdaq 100 Stock Index slumped 1.2% as Treasury yields soared to a fresh year-to-date high near 4.5%.

https://www.bloomberg.com/news/articles/2024-04-10/jefferies-says-stocks-can-rally-even-if-fed-doesn-t-cut-rates