Investors eye Fed rate cut, earnings as key to sustaining market rally

After a stellar start to the year for stocks, investors are on guard for potential bumps in the second quarter as they gauge whether the Federal Reserve delivers on an expected interest rate cut by June and turn their focus on the health of upcoming earnings. The S&P 500 ended the first quarter with a gain of more than 10%, its largest first quarter advance since the nearly 13.1% jump in the first quarter of 2019. Whether the rally continues through June will likely depend on the Fed, which has not yet signaled that inflation has come down enough to justify a rate cut.