Stocks keep hitting record highs — and the Federal Reserve just gave them another reason to climb. The central bank cut rates by a quarter point on Wednesday and signaled two more reductions are likely by year-end, with Fed Chair Jerome Powell calling it a "risk management" move to cushion a softening labor market. That backdrop has only reinforced Wall Street's conviction that the rally isn't over. "Fed rate cuts near market highs have historically led to further gains, though not in a linear fashion," ...

Wall Street fund managers are piling back into equities, even as the economic backdrop turns shakier. Bank of America's latest Global Fund Manager Survey, released Tuesday, showed global equity allocations for September rose to a seven-month high while average cash balances held steady at just 3.9% for the third straight month — a level that often signals caution as investors run short on dry powder. Still, BofA strategist Michael Hartnett noted sentiment hasn't tipped into full-blown euphoria. That woul ...

The S&P 500 closed at 6,615 on Monday, yet another record high, as investors bet the Federal Reserve is about to start cutting interest rates . The rally has Wall Street racing to catch up, with analysts hiking their year-end forecasts. Some stock market bulls now see the index breaking 7,000 before December. That would mean a roughly 6% rise over the next 76 days, and on the face of it, that’s not exactly a feverish climb. But considering the market is already sitting at record highs, a 6% move higher is ...