U.S. stocks closed with mixed results on Monday, with the Nasdaq dropping as investors sold tech stocks amid expectations for few to no Federal Reserve rate cuts this year after Friday’s strong jobs data pointed to a still strong economy.
Bank of America economists have erased their rate cut expectations and now see a rate hike as the more likely next move.
“Inflation is above target and the Fed was primarily cutting to ensure a strong labor market, which has been met,” they said in a note. “This means no further cuts needed,” adding they “see risks for the next Fed move more skewed to a hike versus cut.”
