Rally in Stocks and Bonds Will Power Past a Hawkish Fed, Survey Shows
The S&P 500 will climb to new highs regardless of what the Fed does, according to a Bloomberg client survey.
Jerome Powell, chairman of the US Federal Reserve, during a news conference on Wednesday, June 12, 2024. Fed officials penciled in just one interest-rate cut this year and forecast more cuts for 2025, reinforcing policymakers calls to keep borrowing costs high for longer to suppress inflation.
Photographer: Al Drago/BloombergInvestors shed their fears of a hawkish Federal Reserve, according to Bloomberg’s latest Markets Live Pulse survey, signaling that slower inflation means a soft landing remains in play.
More than half of the 97 respondents to the survey said the 14% surge in the S&P 500 during 2024 will extend regardless of what the Fed does, with nearly a quarter saying central bank easing is needed for stocks to thrive. Investors were even more certain Treasuries will extend their rebound, with 62% forecasting what would be a second-straight annual gain. The Bloomberg US Treasury Index notched a decline of at least 0.8% year-to-date as of Wednesday.