Insights

Our base case for 2026 is no recession. Accommodative monetary policy is set to deepen via Fed rate cuts, a dynamic further reinforced by fiscal stimulus to sustain economic momentum.

Wall Street experienced a mixed week highlighted by the Federal Reserve's policy decision (see below) and a retreat from technology shares. Illustrative of the week's volatility, the Dow and the S&P 500 reached record highs mid-week following the Fed's latest rate cut, before retreating at the end of the week.

The stock market was largely driven by mixed labor data and optimism over a possible interest rate cut following the Federal Reserve's meeting next week.