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Tom Lee: The Fed is resuming a moderate rate-cutting cycle after a long pause
5hours ago

Odaily Planet Daily reports that the US stock market faces a critical period in the coming weeks, one that will determine whether its latest rebound can continue. Employment data, key inflation indicators, and the Federal Reserve's interest rate decision will all be released over the next 14 trading days, setting the market tone for investors. The stock market appears to be at a crossroads: the S&P 500 just posted its weakest monthly gain since March, and September has historically been its worst month. Meanwhile, market volatility has all but vanished. The VIX index, a gauge of fear, has only touched the critical 20 level once since late June.

"Investors were right to be cautious in September," said Tom Lee, head of research at Fundstrat Global Advisors. "The Federal Reserve is resuming a moderate rate-cutting cycle after a long pause, making it difficult for traders to determine their positions." The long-term bullish analyst expects the S&P 500 to fall 5% to 10% this fall before rebounding to between 6,800 and 7,000.