Markets Come Back to Goldilocks Optimism, but Inflation Still an Issue

The Standard and Poors Index delivered four straight days of growth this week shaking off the previous week’s concerns over a recession.

Futures were higher on Friday morning as well. Major analysts including Fitch expect that the Fed will deliver a 250 basis point move later this month and will continue down that path each quarter, while China will continue to cut rates.

While the rates will move lower over time, markets seem to be reacting positively, with the S&P back to about 1% below its all-time high. However, inflation is still a concern and has proven to be more persistent than most economists had expected.

While a strong economy is usually a good sign for the incumbent party, even with a strong debate performance, Vice President Kamala Harris has yet to receive a bump in the polls despite market strength this week.

Consistent interest rate cuts over the next few months will likely continue to open up more activity in lending for banks.