Macro news: U.S. consumers demonstrated resilience with robust spending in Q3 2024, according to JPMorgan Chase and Wells Fargo, as reported by Reuters. Despite inflation concerns impacting low-earners, the banks reported strong earnings and positive consumer trends, which bode well for advertisers and marketers who have long been hesitant in their approach in an uncertain economy.

A possible soft landing: The news alleviates investor fears about high borrowing costs leading to an economic downturn. JPMorgan Chase noted the U.S. economy's successful soft landing, marked by low inflation and steady growth.

• JPMorgan's earnings exceeded expectations, reflecting strong consumer spending and corporate confidence. However, potential challenges loom, including geopolitical risks and stagflation.

• Concerns over Federal Reserve interest rate hikes potentially triggering a recession persist.

• Earlier in the year, job market data and decade-high credit card delinquencies had sparked economic fears.

What to look for: Inflation pressures continue to affect lower-income groups, and consumer sentiment dipped in October due to high prices, while higher-income groups appear to be maintaining spending levels.

• A partially-divided Federal Reserve recently cut interest rates for the first time in four years to balance growth and inflation.

• The cuts arrive just in time for the holiday season, potentially stimulating consumer spending and driving marketing activities across industries. Brands will likely ramp up their cyclical seasonal advertising, while businesses should also benefit from cheaper credit and boosted hiring.