Fed rate cuts likely to support U.S. equities, but with muted gains: BMO’s Belski

BMO Capital Markets' Brian Belski suggests that anticipated Federal Reserve rate cuts could support the U.S. bull market, although future equity returns may be muted. Historically, the S&P 500 has seen positive returns post-rate cuts, averaging 10.4%. Current economic conditions are favorable, with stable job markets and expected corporate earnings growth. BMO maintains a 2025 S&P 500 target of 6,700, recommending overweight positions in Technology, Financials, and Consumer Discretionary sectors while underweighting Health Care and Consumer Staples.