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Fed Rate Cuts 2024 Impact

Fed Rate Cuts 2024 Impact

Plus, Reddit's target IPO valuation.

January 29, 2024

Photo by Etienne Martin on Unsplash

Today is Monday, January 29, 2024.

The Early Bird Index today is 63.75.

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Fed Rate Cuts 2024 Impact

Before the U.S. Federal Reserve provides its next interest rate decision this week, Index Fund Advisors Senior Vice President Mark Higgins discusses the Fed and interest rate cuts in a new episode of the Early Bird podcast.

Background: Interest rates have been up in the past two years to combat rising inflation, but with inflation decreasing in the past few months, investors anticipate several rate cuts from the Fed in 2024.

Powering the Story: Higgins said that the market might be getting ahead of itself by cutting rates. The Fed cannot afford to end high interest rates too early because that may result in inflation returning.

Bottom Line: Inflation must be contained first through interest rates so that it cannot pop up again, according to Higgins.

Zooming In: During these uncertain times, Higgins said that most investors are better off determining long-term objectives for their portfolio and setting an allocation that makes sense for those objectives.

Final Thoughts: What does Higgins say about portfolio rebalancing and stocks? Find out by listening to a new episode of the Early Bird podcast.

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Notables

Notable Earnings Today: SoFi Technologies (Nasdaq: SOFI), Super Micro Computer (Nasdaq: SMCI), Franklin Resources (NYSE: BEN), Cleveland-Cliffs (NYSE: CLF), Philips (NYSE: PHG), Nucor (NYSE: NUE), PotlatchDeltic (Nasdaq: PCH), F5 Networks (Nasdaq: FFIV), Whirlpool (NYSE: WHR), Pacific Premier (Nasdaq: PPBI), Bank7 (Nasdaq: BSVN), Crane (NYSE: CR), Alliance Resource Partners (Nasdaq: ARLP), Harmonic (Nasdaq: HLIT), Alexandria Real Estate Equities (NYSE: ARE), Bank of Marin (Nasdaq: BMRC), Cadence Bank (NYSE: CADE), Calix Networks (NYSE: CALX), Equity Lifestyle Properties (NYSE: ELS), Graco (NYSE: GGG), Sanmina (Nasdaq: SANM), Woodward (Nasdaq: WWD), Celestica (NYSE: CLS), Two Harbors Investment (NYSE: TWO), Capital Southwest (Nasdaq: CSWC).

Notable IPOs Today: GRIID Infrastructure Inc. Common Stock (Nasdaq: GRDI), Autonomix Medical, Inc. Common Stock (Nasdaq: AMIX).

Notable Equity Crowdfunding Campaigns Ending Today: Veer (StartEngine), The Honeybee Collective (MainVest).

Notable Economic Events Today: N/A.

Reddit's Target IPO Valuation

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Photo by Brett Jordan on Unsplash

Reddit is likely going public this year, and now we are starting to get new details about the potential valuation for its IPO (Initial Public Offering).

Details: Bloomberg reported on Sunday that Reddit is considering a valuation of at least $5 billion based on feedback it has received from potential investors in early IPO meetings.

Zooming Out: To put this in perspective, Facebook parent Meta Platforms (Nasdaq: META) has a market cap exceeding $1 trillion, Snap (NYSE: SNAP) is worth over $26 billion, and Pinterest (NYSE: PINS) is worth $25 billion.

Final Thoughts: The past two years have been quiet in terms of IPOs, so investors are hungry for big IPOs in 2024.

Avalanche’s New Scaling Solution

The price of the cryptocurrency Avalanche ticked up 3% on Sunday due to a new scaling solution from the blockchain platform Ava Labs that is said to help Avalanche with more transactions.

Final Thoughts: After a good 2023, Avalanche is down so far in 2024.