The Dow Jones Industrial Average (^DJI) capped Thursday's session with another all-time high for the index this week. Stifel chief equity strategist Barry Bannister joins Market Domination Overtime to discuss his biggest takeaways from this earnings season and his outlook for the market.

Bannister's biggest takeaway boils down to the Federal Reserve's interest rate cuts: "The no landing scenario looks like a pretty strong one now, and it certainly renders the question of whether the Fed should cut rates in 2025 at all. The financials (XLF), particularly, and their results tell us that."

He believes the Fed could cut by 25 basis points at the next two meetings of the year. However, once rates fall to 4.25%, he believes the Fed can pause its cutting cycle, arguing, "Clearly, they're underestimating the growth potential of the economy."

"Granted, there's going to be an adjustment up over time as rates reset to the higher level. But maintain them for a while until the reset occurs and then cut rates. But don't just be in a hurry to cut rates," Bannister continues. He believes markets (^DJI, ^IXIC, ^GSPC) should be taking out some of the rate cuts that have already been priced in.

He explains that this move would probably cause a pullback in the market, which he believes "is not entirely an unhealthy thing."

"We're in a very frothy market. And you know, John Templeton once said that bull markets are born on pessimism and grow on skepticism, mature on optimism, and die on euphoria. We've crossed out of optimism. We're already in this kind of euphoria now," he concludes.

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.

This post was written by Melanie Riehl