The Wall Street Journal

Wall Street’s ‘Run It Hot’ Trade Powers Stock Records

The Federal Reserve is expected to cut rates this coming week and some are betting on a new burst of economic growth

Fed Chairman Jerome Powell appeared on a TV on the floor of the New York Stock Exchange in July.
Fed Chairman Jerome Powell appeared on a TV on the floor of the New York Stock Exchange in July. Photo: Michael Nagle/Bloomberg News

The coolest trade on Wall Street is known as “run it hot.”

While slowing job growth and tariff-related costs remain primary concerns for investors, the core of the trade lies in betting on an economic resurgence, not a recession. The thinking: Tax cuts and falling interest rates will heat up the economy, fueling a new burst of growth.

WSJ Logo
Trump Calls for Ending Quarterly Earnings ReportsExternal link

Trump Calls for Ending Quarterly Earnings Reports