Federal Reserve's rate cut speculations boost US equities, Deutsche Bank offers caution

<p>US equities continued their climb on Wednesday, spurred on her again by thoughts of Federal Reserve pivot to rate cuts in 2024 (pricing for cuts in May is surging.)</p><p>Deutsche Bank analysts are wary, pointing out that:</p><ul><li>this is at least the 7th time in this cycle that markets have seen a clear reaction to a potential dovish pivot </li></ul><p>And outlines the six previous times these expectations were not fulfilled:</p><ul><li>a consistent story of this cycle so far has been that markets have pushed out the timing of future rate cuts</li></ul><p>The cynical among us might point out markets have priced in six of the previous pivots:</p><ul><li>November 2023: “Weak data … downside surprise in CPI”
</li><li>March 2023: “banking turmoil following SVB’s collapse”
</li><li>Late September/Early October 2022: “Major market turmoil centered on the UK”
</li><li>July 2022: “Global recession fears, weak inflation print”
</li><li>May 2022: “Rising risks to global growth”
</li><li>Late February/Early March 2022: “Russia’s invasion of Ukraine”</li></ul><p>Plenty of trading opportunities though. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.