Fed left rates unchanged yesterday, but the path ahead remains data-dependent.
While the markets appear to be almost certain about a September cut, it’s good to prepare for any eventuality.
In this piece, we’ll take a look at 2 stocks that you can add to your portfolio ahead of September.
Unlock AI-powered Stock Picks for Under $8/Month: Summer Sale Starts Now!
The Federal Reserve yesterday as widely expected, but offered little clarity on the timeline for potential cuts.
While the central bank maintained a cautious stance, citing recent economic data, market expectations for a September rate reduction remain strong, with at 87% at the time of writing.
Amid the Fed’s dovish tilt, the stock market rallied, buoyed by a generally positive earnings season thus far. Major indices climbed, with the posting a 1.58% gain.
While the Fed’s decision to maintain rates was unsurprising, the path forward remains uncertain. Upcoming and data for July and August will be crucial in determining the central bank’s next move.
However, current trends suggest at least two rate cuts before the end of the year.
As the Fed prepares to embark on a rate-cutting cycle, certain sectors and stocks are poised to benefit. Below, we’ll explore two stocks to prepare your portfolio for the changing economic landscape.
1. Qualcomm
Qualcomm’s (NASDAQ:) stock price surged over 8% yesterday after the company beat Q2 expectations.
Revenue climbed to $9.39 billion, surpassing forecasts by $180 million, while earnings per share reached $2.33, exceeding estimates by $0.08. This strong performance has halted a recent downtrend and presents a potential buying opportunity.
A 12% year-over-year increase in processor and smartphone modem sales further bolsters Qualcomm’s outlook. Technical analysis indicates a potential breakout from a resistance level near $200, which could propel the stock toward its historical high around $230.
2. Mastercard
Mastercard (NYSE:), like Qualcomm, released its quarterly results yesterday, once again surpassing expectations in revenue and earnings per share. This continues…
..
