Banco Faba: It is expected that the Federal Reserve will adopt a hawkish interest rate cut policy

According to Jinshi, BNP Paribas predicts that the Federal Reserve will adopt a hawkish interest rate cut policy. The bank may "open the door to pause further rate cuts, but the duration of the pause is uncertain."

In addition, Jim Baird, Chief Investment Officer at Plante Moran Financial Advisors, said that any factors leading to market expectations that the Fed's pace of interest rate cuts might be slower than investors expect could potentially create some downside room for stocks.