Stock market melt-up is being fueled by blind belief in lots of rate cuts in 2026

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To this day, I was surprised by the stories that develop in the markets.

I was surprised by the speed of the recovery of the markets after the “Liberation Day” massacre. Definitions? Who cares? More stocks NVIDIA (NVDA), please!

Also add to the sudden column about how quickly the markets are bounced from its lowest level in March 2009. I clearly remember to stare in the economic data full of God in most of 2009 … and the Hashd market.

Today I return with the latest scratching novel (although a smile) is developing between investors: 2026 will be a Monster A year for interest rate discounts, so buy shares delivery today! You did not read this error, friends.

There are five months remaining in 2025 – the months that will include profits periods, the final deadlines for tariffs, and a final tax date, and there is no doubt that a set of negative surprises – however, investors have already been identified in 2026.

I do not bother you, and I play Moraghan Stanley to bring this developing narration to the surface last week, as I heard it for weeks.

Podcast: Within the latest securities market.

Morgan Stanley said the economy team sees seven price cuts in 2026, which is “a dynamic that is likely to be in the second half of the second half of the rates of background and evaluation.”

Mike Wilson, the chief investment strategy, noted that “there are already signs that the stock market has started to pricing this now.”

“Our work shows that the performance of the stocks is strong during the Federal Reserve sessions, even if these rear winds start getting an early discount,” Wilson continued.

Keep in mind that all the Federal Reserve Speaker Jerome Powell in recent weeks indicates that the rate of reduction later this month or September is out of guarantee. Strong job report in June increases the interference on the image.

However, the truck reserves on seven price cuts for 2026.

Read more: How does the Federal Reserve Price decision affect your bank accounts, loans, credit cards and investments

I must raise my hat to the veteran Charles Schwarws Strategic Expert Les AN Sonders for his decline in this view.

“So I have somewhat contradictory to it [rate cut view]. I think part of the reason, if you want to refer to basic reasons for the market as the case, it is in reality because the Federal Reserve does not reduce interest rates. This is because the conditions of the background in terms of its connection to its double mandate do not suggest the needs of the federal reserve to move to an easier policy. “