This year began with heightened expectations amid market participants for multiple rate cuts by the Federal Reserve throughout the year. However, as inflation proved to be a genie that was tough to put back in the bottle, expectations for that long-awaited policy pivot started to decline.
While there's still hope for a rate cut this year, as the Fed has highlighted “good progress” on inflation, the central bank has now adjusted its messaging to indicate just one expected cut in 2024. As a result, many growth stocks have now given back the easy-money upside that investors were once pricing in for 2024.
