interest rate cuts

Homebuilders surge 17% YTD amid rate cut expectations and housing shortage. PulteGroup gains 21.5%, signaling strong investor confidence in the residential construction sector.

Traders are buying the 3x leveraged financial ETF (FAS) anticipating Fed rate cuts, but advisors warn leveraged funds suit short-term trading only due to amplified losses and recompounding risks.

January inflation fell to 2.4%, the lowest since May 2025, driven by declining shelter costs. Markets now expect potential Fed rate cuts as early as June 2026.

U.S. markets rally on softer inflation data boosting rate-cut expectations. Small-cap stocks, commodities, and growth sectors lead as investors bet on lower borrowing costs ahead.