Bank of America stock rises 58% due to Fed's interest rate pause, prompting investment cautions as rate cut expectations decrease from six to two.
Bank of America stock has risen 58% since October due to the Federal Reserve's pause in interest rate hikes. The potential for interest rate cuts this year and next could support the bank amid significant unrealized losses in its loan portfolio. However, the number of expected rate cuts has decreased from six to two, and the stock's recent gains raise questions about whether it's a good time to buy. Investors should consider these factors before investing.
June 29, 2024
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