Whether It’s 25 or 50, Rate Cuts Are Coming | LPL Market Signals

Market Signals by LPL Financial

In the latest LPL Market Signals podcast, LPL Financial’s Chief Equity Strategist Jeffrey Buchbinder and Chief Fixed Income Strategist Lawrence Gillum recap the best week of the year for the S&P 500, share some reasons to like municipal bonds, and preview this week’s Federal Reserve meeting. Stocks surged last week thanks in large part to Wednesday’s turnaround sparked by artificial intelligence darling NVIDIA (NVDA) and increasing optimism surrounding Fed rate cuts. Next, the strategists discussed how the election outcome could impact municipal bonds. With the Tax Cuts and Jobs Act set to expire in 2025, unless there is legislative action, tax rates could be headed higher, which means municipal bonds may appear more attractive compared with taxable alternatives. Last, the strategists discussed the week ahead when all eyes will of course be on the Federal Reserve and the near-certain first interest rate cut in four years. According to news reports, the Fed is split between a 0.25% cut and 0.50% cut on Wednesday, but the path of rate cuts into 2025 may be more important. Tracking: 630717