Stock investors understandably are focused on how much further the Fed can take rates down. Investors are hoping for a repeat of what happened after the Fed cut rates a half-point in September and major stock indexes soared.

Market sentiment hinges on the Fed’s economic outlook and potential rate cuts, with a 25bps reduction expected. Investors are focused on future growth and inflation commentary, especially amid the complexities of an election year and geopolitical tensions.

The Fed will cut the policy rate by 25 basis points at the November FOMC meeting while continuing with Quantitative Tightening. Check out my views on Fed meeting.