We have ‘two more rate cuts coming,' says Wharton's Jeremy Siegel

• The market broadening to include value and smaller stocks is expected to be durable, moving beyond the concentrated performance of the 'Magnificent 7'.
• Two more rate cuts are anticipated, which will particularly benefit smaller stocks by lowering short-term interest rates.
• A stronger economy and the widespread adoption of AI by companies (AI users) are expected to boost profit margins and overall economic growth, especially for firms with lower P/E ratios.
• Despite potential shifts in the labor market due to AI, the current strong job openings and low unemployment rate suggest a resilient economy.

Jeremy Siegel expresses a bullish outlook on the market, anticipating a broadening beyond the 'Magnificent 7' to include value and smaller stocks. He foresees two more rate cuts and a stronger economy, which will benefit these segments. Siegel also highlights the potential for AI adoption to drive profit margin improvements across a wider array of companies, contributing to a robust economic trajectory into 2026.