Wall Street Reaches Record Highs Amid Fed Easing Policy

On Wall Street, the day unfolded with the Dow and S&P 500 closing at new all-time highs, reflecting investor optimism in the face of a new Fed monetary policy. Bob Elliot, co-founder, CEO, and CIO of Unlimited Funds, emphasized the Fed's commitment to significant monetary easing despite asset prices already at elevated levels. This environment, he believes, is conducive to growth, contrasting concerns expressed in the bond market about a looming downturn. The performance of sectors was mixed; while the S&P 500 hit fresh records, technology stocks showed signs of pressure while utilities thrived. Elliot pointed out that high expectations in the mega-cap tech segment may be challenging to sustain, suggesting a cooling-off period might be beneficial. He also discussed the implications of the Fed's recent interest rate cuts which were described as potentially protective even in a robust economy. Elliot warned of an impending inflationary pressure due to the accommodative stance which may not get fully reflected in the reported data for another year or two, alluding to a disconnect that might influence market conditions ahead.