Stocks Will Continue to Rally After Sharp Fed Rate Cut, Investors Say

The US economy will avoid a recession, majority of respondents said

A television station broadcasts Jerome Powell, chairman of the US Federal Reserve.

Photographer: Michael Nagle/Bloomberg
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US equities will climb through the rest of the year with the Federal Reserve’s aggressive interest-rate cut bolstering the chances of a soft landing for the economy, according to a survey of Bloomberg Terminal subscribers.

The rally will likely be too modest to take the S&P 500 Index above 6,000 before next year, with 44% of the 173 respondents to the latest Markets Live Pulse forecasting the benchmark will rise less than 6% from its Wednesday close and 19% expecting it to decline. The remaining 37% of those who took the survey expect a climb steeper than 6%.