Wall Street Live

Rate Cut Hopes Rise Amid Consumer Slowdown Signs

By Athena Xu

4/3, 16:44 EDT
lululemon athletica inc.
Nike, Inc.
PVH Corp.
Ulta Beauty, Inc.
  • Consumer slowdown warnings from various companies are causing sector-specific stock declines, but they also indicate a cooling economy that could lead to rate cuts, supporting a bullish case for equities concerned about high interest rates.
  • Ulta Beauty, Nike, Lululemon, and PVH are among the companies reporting slowing sales, contributing to recent stock declines. Slower inflation and strong job reports are balancing out the economic picture.
  • Fed Chair Powell remains cautious, suggesting a wait-and-see approach to determine if recent price increases are temporary. Despite this, the S&P 500 closed with a slight gain, with expectations of rate cuts later this year.