BofA’s Hartnett Warns Dovish Fed Rate Cut Imperils Stock Rally

The year-end rally in equities is at risk from a Federal Reserve outlook that’s too cautious on the economy, according to Bank of America Corp. strategists.

With the S&P 500 Index within striking distance of a record high, investors are confident about a best-case scenario where the Fed cuts interest rates alongside falling inflation and economic growth remains resilient.