Chances Of Fed Rate Cut In October Rise: Sector ETFs To Buy
Zacks Investment Research | Oct 03, 2019 11:00PM ET
Cheap money flows have been the biggest catalyst behind the stock market rally in recent months. The Fed has slashed interest rates two times this year — in July and in September — by 25 bps each to sustain a decade-long economic expansion. The trend is likely to continue this month, given the barrage of downbeat data that points to a deeper economic problem.
The Institute for Supply Management’s purchasing managers index for the manufacturing sector dropped to 47.8 in September, representing the lowest level in more than a decade. A private-sector employment report from Automatic Data Processing showed that a modest 135,000 jobs were created in September. Average monthly job growth fell to 145,000 over the past three months from 214,000 in the year-ago quarter. Meanwhile, the Institute for Supply Management’s non-manufacturing activity index also fell to 52.6 in September, the lowest since August 2016 (read: Zacks Investment Research
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