S&P 500 has ‘room to rally’ before Fed rate cut, according to this stock ‘playbook’

U.S. stocks may have some room to keep up their bullish run before the Federal Reserve’s first interest-rate cut —  despite a jump in volatility after Tuesday’s hotter-than-anticipated inflation data, according to DataTrek Research.

The S&P 500 index SPX fell a sharp 1.4% Tuesday for its biggest drop since Jan. 31, but remains up this year as well as since the Fed’s last rate hike on July 26, FactSet data show. The index, which measures the performance of large-cap stocks in the U.S., was rebounding Wednesday afternoon, rising…