With a slowdown in inflation strengthening speculation that the Federal Reserve is nearing the end of its interest-rate-hike cycle, investors expect a breather from the turmoil that kept markets under pressure last year. In addition, the employment data showed that growth continues to hold up while inflation is easing.
However, as the Federal Reserve stays on course with its aggressive inflation fight, Dubravko Lakos-Bujas, Global Head of Equity Macro Research, JPMorgan Chase & Co. (JPM), expects the S&P 500 to re-test the lows of 2022 in the first half of the year. Furthermore, Bankrate foresees the central bank lifting rates to 5.25-5.5%, a quarter-point higher than the Fed’s current forecasts.
