Steven Blitz, chief U.S. economist at TS Lombard, remains optimistic about market performance even in the absence of expected interest rate cuts by the Federal Reserve this year. His sentiments reflect a broader sentiment among investors as they await further U.S. economic data and signals from Fed officials regarding potential rate adjustments in 2024. Last week, the Fed opted to maintain interest rates for the fifth consecutive time, sticking to expectations outlined in previous communications.

This decision, coupled with the Fed's projection of three quarter-point cuts by year-end, spurred a market rally both domestically and internationally, propelling benchmark indexes to new record highs. Blitz emphasized the evolving nature of the Fed's stance, noting that market dynamics should naturally adapt rather than being dictated by Fed intervention. Traders are recalibrating their expectations, with current probabilities of a June rate cut hovering around 55%, down from nearly 70% last week.