On July 21, according to data from Yardeni Research, the Federal Reserve is expected to maintain interest rates unchanged at its meeting on July 30, with only a 4.7% probability of a rate cut. Strong June employment data has delayed recent rate cut expectations, but a moderate inflation report might prompt the Federal Reserve to hint at a potential rate cut in September.
If the Federal Reserve releases a dovish signal next week, it could boost the stock market. Currently, the stock market has risen due to better-than-expected second-quarter earnings. Yardeni noted that the S&P 500's forward earnings reached a historical high of $284.36 last week, with a year-end target of $300, and the index is expected to continue setting new records, despite valuation concerns.
