Morgan Stanley's Rate Cut Prediction: Morgan Stanley now anticipates the Federal Reserve will cut rates by 25 basis points in September, followed by another cut later in the year, a shift from their previous stance of holding rates steady until 2026.
Influence of Powell's Speech: The change in outlook was prompted by Fed Chair Jerome Powell's speech at Jackson Hole, which emphasized labor market weaknesses over inflation concerns, signaling a potential for earlier easing.
Wider Market Consensus: Other major banks like Barclays, BNP Paribas, and Deutsche Bank have also adjusted their forecasts to expect rate cuts this fall, leading to an increased market expectation of an 80% chance for a September cut.
Cautious Outlook on Easing: Analysts caution that while the Fed may cut rates, it will do so cautiously; upcoming economic data on jobs, wages, and inflation will be crucial in determining the Fed's actions in September.
Wall Street analysts forecast SPY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SPY is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast SPY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SPY is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 685.400
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Current: 685.400
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
