As the Federal Reserve gears up for its first interest rate cut in four years, investors are now preparing to navigate a broadening market rebound. Advisors Capital Management partner and portfolio manager JoAnne Feeney joins Morning Brief to discuss how the Fed's rate easing cycle will impact the S&P 500 (^GSPC) and how investors can best position their portfolios.

"We've all, for a while, were distracted by the big shiny object that was Big Tech, really took off obviously over the last many quarters. And I think it snuck up on people how much of a move there has been in the other 493," Feeney tells Yahoo Finance. She explains that the equal-weight S&P 500 is being driven higher by improved earnings growth which will continue as the Federal Reserve eases interest rates.

She adds, "So even though now we might be distracted by all the Fedspeak, ultimately, what companies can produce in terms of earnings really is going to drive their valuations." Despite earnings estimates coming in lower for the rest of 2024, Feeney points out they are actually higher for 2025. Therefore, investors should think about the stocks that will perform best over the longer, not shorter term.

Feeney also encourages investors to carefully weigh their investments, as the election, geopolitical climate, and weakening labor market could all pose risks ahead.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Melanie Riehl