Despite initial hopes, the Fed has indicated no immediate cuts to interest rates, disappointing investors. However, strong corporate earnings are expected to drive stock performance, as seen in companies like Morgan Stanley. While some companies are performing well and boosting the market, others like Bank of America and Johnson & Johnson have faced challenges, leading to stock declines. The market is still influenced by Fed decisions, but company earnings are also a significant factor.
Goldman Sachs has bounced back after a rough year, thanks to a focus on its core banking and trading operations. They've shed some consumer businesses that were costing them money. The bank's CEO has been praised for making these changes. Other banks like Morgan Stanley are also expected to do well, driven by the strength in the stock market. However, banks as a whole may struggle with lower interest rates.
