The U.S. stock market exhibited a cautious stance as it hovered near all-time highs, reflecting a blend of optimism and apprehension among investors. The S&P 500’s proximity to its record level stirred a debate about the market’s next direction amid expectations of Federal Reserve rate cuts in 2024. The S&P 500 Index (SPY), which traded just 0.5% shy of its peak, was influenced by traders betting on rate cuts as early as March 2024, a sentiment bolstered by the Fed’s recent dovish shift in its rate projections.
