tl;dr
The four largest banks in the US anticipate the Federal Reserve will cut interest rates due to rising recession concerns. Bank of America predicts a September rate cut is highly likely following a recent global stock market decline. Wells Fargo analysts expect a 50 bps cut in September and another 5...
The four largest banks in the US anticipate the Federal Reserve will cut interest rates due to rising recession concerns. Bank of America predicts a September rate cut is highly likely following a recent global stock market decline. Wells Fargo analysts expect a 50 bps cut in September and another 50 bps in November, citing labor market deterioration. JPMorgan Chase also believes two 50 bps cuts are imminent. Citi economists foresee a total of 100 bps cut by November and further reductions until interest rates stabilize at 3% to 3.25% by mid-2025. The Bureau of Labor Statistics data shows a rise in unemployment, fueling recession fears and prompting investors to sell off stocks. The global stock market experienced a $6.4 trillion loss over three weeks, with the S&P 500 recording its worst trading day since 2022 on August 5th.
The four largest banks in the US now believe the Federal Reserve is about to cut interest rates amid rising recession fears. A Bank of America economist says a September Fed rate cut is a “virtual lock” following last week’s $6.4 trillion global stock market rout, reports Business Times. “The rate tide has quickly turned.” Analysts at Wells Fargo see the Fed cutting 50 bps in September and another 50 bps in November, citing deteriorating conditions in the labor market, reports Investing.com. “The FOMC (Federal Open Market Committee) needs to get back to a ‘neutral’ stance of policy quickly or else it risks a vicious circle of labor market weakness.” JPMorgan Chase also reportedly believes two 50 bps cuts are incoming. As for Citi economists, they also see the Fed cutting 100 bps by November with more rate cuts in the subsequent meetings until interest rates rest in the 3% to 3.25% range by mid-2025, reports Bloomberg.
Earlier this month, data from the Bureau of Labor Statistics showed that unemployment rose from 4.1% in June to 4.3% in July, with the number of jobless Americans soaring to 7.2 million. The weak job market data has stoked fears of recession, driving investors to sell off risk assets like stocks amid doubts that the Fed will be able to engineer a soft landing. Over a three-week period, the global stock market witnessed a $6.4 trillion wipeout with the S&P 500 dropping by 3% on August 5th to record its worst trading day since 2022.
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In the current market, the S&P 500 index has exhibited a strong bullish trend, supported by the 50-day moving average. The Relative Strength Index (RSI) also indicates a bullish momentum, approaching overbought levels but still within a reasonable range.
The tech sector has shown resilience, with stocks like Apple and Microsoft displaying a clear uptrend, while Amazon has approached a key resistance level. Facebook, however, faces a bearish trend after breaching its 200-day moving average.
The energy sector presents an interesting picture, with Exxon Mobil and Chevron experiencing a bullish breakout, while the overall sector remains in a consolidation phase, potentially indicating an impending bullish move.
Gold has encountered a strong resistance level, signaling a bearish outlook, while Bitcoin's price action suggests a potential bullish reversal from its recent consolidation pattern.
More about Martin Marietta Materials Inc
Martin Marietta Materials, Inc. is an American-based company that supplies aggregates and heavy building materials. The company operates in 26 states, Canada, and the Caribbean, providing resources for roads, sidewalks, and foundations.
Sector: Energy & Transportation
Industry: Mining & Quarrying of Nonmetallic Minerals (No Fuels)
Market Cap: 32.61B
PE Ratio (TTM): 16.05
EPS (TTM): 2.96
52 Week High: 33.24
52 Week Low: 107.25
Dividend Yield: 0.308
Revenue: 6.617B
Net Income: 641.11M
Debt to Equity: -0.152
Quick Ratio: -0.031