Analyst: The Fed's dovish stance is beneficial for risk assets, and it may cut rates twice

According to Jin Ten, after Federal Reserve Chairman Powell expressed concerns about the labor market yesterday, Wall Street is increasingly betting that the Fed will cut interest rates two times or more in 2026.

Scott Helfstein of Global X stated that a dovish Federal Reserve should overall benefit risk assets, especially growth stocks and cyclical stocks. He pointed out that as borrowing rates decline, industries related to the corporate investment cycle may also be in a favorable position.