Jay Hatfield, CEO of Infrastructure Capital Advisors, says a “power rally” for stocks is underway in July, driven by falling oil prices and softening inflation numbers.
Hatfield tells Fox Business he expected Crude oil, which he said is heading towards $60 after dipping below $70, will help produce negative monthly CPI figures in July and August.
He believes these numbers should ensure that the Federal Reserve’s rate cuts are priced into the markets.
“We think we’re about to get into the real Goldilocks of the year because we’ve been optimistic about oil dropping below 70, which most people thought was wrong. We think we’re going to hit 60.
We think that in both July and August we will have negative pressure on the CPI for the previous months, and that will offset the Fed’s rate cuts.”
Hatfield says broad summer data, not just chip company results, will make July strong for stocks.
He also believes the market’s resilience during June’s sector rotation supports his 9,000 target for the S&P 500.
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