STORY: Stocks rebounded following Friday’s sell-off, with the Dow rising one and one-third percent. The S&P 500 added about one and one-half percent, and the Nasdaq climbing nearly two percent.
Investors sought bargains after Friday’s bleak jobs report and increased bets that the Federal Reserve will cut interest rates at its September meeting.
Odds for a reduction next month stand at about 84%, according to CME Fedwatch. Market participants see at least two quarter-point cuts by the end of this year.
Though SWBC Chief Investment Officer Chris Brigati isn’t one of them.
“I'm still a naysayer on Fed rate cuts this year. I believe one maybe zero is more likely than not in my opinion. Still, I haven't changed my mind on that, but I'm wavering a little bit, to be honest with you.” //
“But ultimately, I'm concerned about the fact that we could have stickier and higher inflation. And for the Fed to cut rates into a rising or even a stickier inflationary environment does present some problems. So, I'm still a little bit of a naysayer that they will have the bandwidth and the ability to cut rates going forward.”
Stocks on the move included Tesla, which advanced two percent, after the electric vehicle maker granted CEO Elon Musk a pay package of 96 million shares worth about $29 billion.
And shares of Spotify gained five percent, after the music streaming platform announced plans to raise the monthly price of its premium individual subscription in select markets from September.
