What a rate cut could do for the market's record highs

The core Personal Consumption Expenditures (PCE) index rose 0.1% in May from April, which was in line with expectations and slower than April's 0.3% increase. The index is often referred to as the Federal Reserve's preferred measure of inflation. With numbers pointing toward cooler inflation, the possibility of a rate cut before the year's end may be back on the table.
State Street managing director Marvin Loh joins Morning Brief to give insight into the latest inflation data and its implications for Federal Reserve policy moving forward.
When asked if rate cuts could still support all-time highs in the stock market, Loh says, "I think it is supportive. I think keeping the Fed in the story from a rate-cutting perspective is powerful. You know, we're coming into earnings season. Those numbers look pretty solid, and really looking at growth expectations around earnings for 2024 as a full year and 2025. It still shows that there's strength within the corporate earnings space."
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