US equities (^DJI, ^IXIC, ^GSPC) appear uneasy, trading lower ahead of Tuesday’s market open as economic data in the form of the ISM’s manufacturing PMI (Purchasing Managers’ Index) came out hotter-than-expected. Markets are also abuzz with high anticipation for Friday’s jobs data for the month of March. With the macro backdrop uncertain for the second quarter, some investors may be looking for new entry points to balance their portfolios.
BlackRock Americas iShares Investment Strategy Head Gargi Chaudhuri joins Yahoo Finance to break down what to expect with the upcoming jobs data, taking a look at the Federal Reserve’s potential policy decisions for late 2024, and gives insight into the economic backdrop investors should be considering.
In terms of whether or not the equity market can do well regardless of interest rate cuts, Chaudhuri states: "Looking at healthcare, looking at tech, looking at communication services, those areas of the market that have stable earnings growth, looking at something like our QUAL ticker has done well in regimes off lower interest rates and higher interest rates. And that’s very much an earnings growth story. So to the extent that AI still remains something that we are focused on and we expect that to be the case, to the extent that there is free cash flow that can be put back into research and development, that allows for that earnings growth to remain pretty consistent and I think that can allow quality parts of the market to do well."
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