With odds rising for an interest rate cut at the September Federal Reserve meeting, investors are preparing for the impact of this upcoming policy shift on various stocks and sectors. Bank of America notes that with inflation cooling toward the Federal Reserve’s target, coupled with signs of the U.S. economy moderating, it's setting up an ideal environment for interest-rate sensitive cyclical stocks:
“This confirmed our thesis that we’re on the path to goldilocks, with macro and inflation back in sync,” after over two years of divergence, said Ohsung Kwon, equity and quant strategist at BofA.
