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Forget Rate Cuts. Bad News Could Finally Be Bad for Stocks.

1. Labor market shows weakness with highest jobless claims in four years. 2. Inflation data aligns with forecasts, easing concerns about rising prices. 3. Federal Reserve may initiate interest rate cuts, influencing economic outlook. 4. GDP growth remains stable at 3.1%, supporting stock market optimism. 5. Wall Street predicts a 7% rise in S&P 500 by year-end.

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FAQ

Why Bullish?

The prospect of interest rate cuts typically supports stock prices. The S&P 500's positive predictions reinforce market confidence.

How important is it?

The article outlines critical economic indicators and Fed policies affecting market sentiment. It links directly to investor behavior impacting SPY's performance.

Why Short Term?

Immediate reactions to economic data and Fed decisions often result in short-term volatility. Given current uncertainties in jobless claims, outlook could shift rapidly.

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