The Globe and Mail reports in its Thursday, July 11, edition that the possibility of imminent interest rate cuts is strengthening the argument for investors to remain optimistic following a surge in U.S. stocks. A Reuters dispatch to The Globe reports that this trend may soon be challenged by upcoming corporate earnings reports and escalating political uncertainty. The expectations that the Federal Reserve will begin its anticipated cycle of interest rate cuts in September remained strong on Tuesday. This comes after Federal Reserve chairman Jerome Powell informed Congress that the U.S. is no longer experiencing an overheated economy, indicating that the argument for implementing looser monetary policy is becoming stronger. Rate-cut bets have fluctuated sharply throughout the year and have been only one of several factors -- along with strong earnings and excitement over artificial intelligence -- that have helped the S&P 500 rise about 17 per cent year-to-date. Many investors believe increased clarity on when the Fed will begin easing monetary policy and how much it might lower rates in 2024 could provide a buffer to stocks if markets become turbulent in the coming months.