Los Angeles, CA – DoubleLine Capital CEO Jeffrey Gundlach predicted that the Federal Reserve’s dot plot would forecast only two rate cuts for this year, down from the previous estimate of three cuts for 2024. During an investor webcast, Gundlach shared his insights on the Fed’s monetary policy decisions, pointing to a more conservative approach to interest rate adjustments.
The dot plot offers a glimpse into the expectations of 19 Federal Open Market Committee (FOMC) members about future interest rates, providing insight into the trajectory of rates up to 2026 and beyond. Gundlach’s perspective on the Fed’s direction comes against the backdrop of ongoing efforts to combat inflation and stabilize the economy.
Earlier, Gundlach had expressed his view that there might be only one rate cut in the current year as the Fed tackles inflationary pressures and aims to ensure a balanced economic environment. This shift in rate cut projections reflects the Fed’s evolving strategies in response to changing economic conditions and market dynamics.
Meanwhile, in the realm of after-hours trading, notable stock movements included a significant surge in Oracle’s stock price following the announcement of lucrative cloud deals with key partners like Google and OpenAI. Despite falling short of expectations in its fiscal fourth-quarter results, Oracle’s shares saw a remarkable climb of nearly 9%, showcasing investor confidence in the tech giant’s strategic endeavors.
Another standout performer was Rentokil Initial, with shares jumping approximately 7.5% after activist investor Nelson Peltz’s Trian Partners revealed a substantial stake in the pest-control company. This development underscored the influence of strategic investors in reshaping the market landscape and driving stock performance beyond regular trading hours.
Looking ahead, stock futures opened with minor fluctuations, signaling a cautious start to trading after hours. The S&P 500 and Nasdaq 100 futures experienced marginal declines, while Dow futures hovered just below the flatline. These subtle shifts reflected market sentiment and investor sentiment as they awaited further developments in the financial landscape.