2 Reckless but Potentially Valuable Forecasts for This Week

I'm going to make a couple of reckless forecasts for this week.

On Wednesday, September 18, Fed Chair Jerome Powell will announce a 50 basis point rate cut, signaling the end of an aggressive rate-hiking cycle that began in 2022. This will be the first cut in over four years.

As a result, the NASDAQ will rise more than 1%, maybe as as high as 3% by week's end. With inflation moderating and further rate cuts probable, investors could flock back to tech stocks, pushing the index higher. The NASDAQ has historically responded positively to rate cuts, with the index rising an average of 2.4% in the month following similar announcements.