Starbucks, Others Could Benefit When Fed Pivots: Bank of America

Published by
The Street

By Dan Weil While the Federal Reserve is still increasing rates, it could begin cutting in the third quarter next year, Bank of America says. Soaring inflation, rising interest rates and fear of recession have hammered consumer discretionary stocks, making them the weakest performing sector of the market so far this year. The S&P 500 Consumer Discretionary index has slid 18.2% year to date through Aug. 10. This trend is “entirely in keeping with historical trends,” Bank of America analysts wrote in a commentary. The U.S. is late in the economic cycle, which traditionally means trouble for cons…

Read More