TechFlow news, September 22 — According to Jinshi Data, BofA strategist Hartnett pointed out that the market's reaction to a 50-basis-point Fed rate cut appears to follow either a "soft cut" or a "panic cut" script. U.S. equities and credit markets are pricing in 250 basis points of Fed rate cuts by the end of 2025, along with an 18% earnings growth for S&P 500 constituents. Hartnett warned of a resurgence of "bubble risks," saying investors are being forced to chase rallies. He explained that Wall Street favors a "panic-driven cut," as a 50-basis-point Fed rate cut would lower real interest rates and help prevent small businesses from cutting jobs.
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