Global markets

Following months of breakneck gains in equities on the back of expected deeper monetary easing and the AI-fueled momentum in economic growth, markets are suddenly stalling with bearish overhang as a result of concerns about tariffs, renewed inflation and its negative outlook for the rate path.

History can tell us a lot about how markets perform in the wake of monetary easing. In anticipation of rate cuts in the U.S., we talked with Solomon Tadesse, Head of North American Quant Equity Research at Societe Generale Americas, about how expected rate cuts from the Fed will impact US markets.

Stephen Gallagher, Societe Generale’s chief US economist, thinks that the high levels of goods purchases will soon drop back to historical trend levels. He illustrates this with the example of people no longer going to the gym during the pandemic (service expense) and instead buying exercise equipment (goods) to use at home.