Summary: The FOMC cuts rates by 50 basis points, bringing the federal funds rate to a range of 4.75% to 5%. The latest Fed Dot Plot suggests there will be another 2 cuts (50bp) by 2024, followed by 4 more cuts (100bp) in 2025. However, traders are expecting more cuts (3 additional cuts by 2024, followed by 6 more in 2025), according to CME FedWatch. Conclusion: The Fed’s significant rate cut of 50bp shows its determination to stay ahead of the curve and prevent a hard landing. Market participants now believe the U.S. economy is headed for a soft landing at worst. While it looks like stocks are poised to rally, there’s a possibility that investors have already priced in much of the anticipated 2024 and 2025 rate cuts. Investors should be cautious of the election uncertainties that may
Fed’s Half-Point Rate Cut Fuels Optimism for Soft Landing as Global Markets React
Global markets are responding to the Federal Reserve's decision to kick off its rate-cutting cycle with a half-percentage-point reduction, signaling the start of what many hope will be a controlled path toward stabilizing the US economy. Investors are closely watching the central bank’s approach, with Fed Chair Jerome Powell cautioning that future rate cuts may proceed at a slower pace than some anticipated. As the dust settles, the Treasury market, global equities, and major currencies have reacted in various ways to the Fed's move, while focus shifts to the upcoming decisions from the Bank of England (BOE) and Bank of Japan (BOJ). Fed’s Decision and Market Reaction Fed Kicks Off Rate Cuts with a Bang The Fed delivered a bold half-point cut to the federal-funds rate, bringing the new targ
There's a gaming software stock that's up 203% year-to-date, but the market thinks its growth story isn't over yet.Shares of the company fell to over $10 at the beginning of 2023 due to the high interest rate environment that has closed in on the suppressed advertising and gaming market, and have now risen to over $120.As the Federal Reserve has officially begun a rate-cutting cycle, this type of strong-performing growth stock could draw further coveted funding.It’s $AppLovin Corporation(APP)$.Advertising, gaming, and entertainment peers of tech giants like $Trade Desk Inc.(TTD)$$Meta Platforms, Inc.(META)$$Alphabet(GOOGL)$
18 Sep Stocks Close Lower as Investors Comprehend Fed's Rate Cut Decision
Major stock indexes closed lower on Wednesday, giving up the gains that were posted in the immediate aftermath of the Federal Reserve's decision to cut interest rates for the first time in more than four years The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite each fell 0.3%, after seesawing in the final few hours of trading as investors assessed the Fed's policy statement, the quarterly economic projections of Fed officials and comments from Chair Jerome Powell. The S&P 500, which surged to a record high shortly after the Fed decision was announced, ended up snapping a seven-session winning streak. The Fed's policy committee cut the influential fed funds rate, which was at a 23-year high, by half a percentage point, a bigger move than many market participants had expec
Summary: Live Sharing on Interest Rates Cuts and Impacts
**Navigating Market Dynamics: The Impact of Interest Rate Cuts on Global Markets** Interest rate cuts are a vital tool used by central banks, like the Federal Reserve, to stimulate economic activity. When rates are lowered, borrowing becomes cheaper, encouraging both consumer spending and corporate investments. This, in turn, often leads to higher stock prices as businesses benefit from reduced financing costs. The relationship between interest rate cuts and the global economy is complex but crucial for investors looking to optimize their portfolios **The Technology Sector and Growth Stocks** One sector significantly impacted by interest rate cuts is technology. The tech industry relies heavily on external financing for research and development, and lower interest rates make borrowing chea
The upcoming Robotaxi AI Event on October 10th is seen as key to $Tesla Motors(TSLA)$ future growth; after all, Tesla has been sluggish so far this year and has faced problems on different fronts such as overvaluation, declining margins, executive departures, and Musk's personal behavior.The importance of the Robotaxi AI Event is that it could open up a multi-trillion dollar AI market opportunity.Current market expectations include:The latest Fully Self-Driving (FSD) technology, expected to be FSD v12.5, emphasizing Robotaxi's ability to handle complex traffic situations without human driver interventionDriving the commercialization process, by showcasing Robotaxi in real-world scenarios, Tesla hopes to attract investors and partners, which is a n
Fed Rate Cut Sparks Opportunity: Small-Cap Sectors Ready for Growth
With the Federal Reserve poised to release its “rate-cut magic,” small-cap sectors are gearing up to seize the opportunities presented by the latest round of interest rate reductions. The Fed’s decision to cut the federal funds rate by 50 basis points to a range of 4.75% to 5.00% marks the first rate cut since 2020, following a series of rate hikes that had elevated rates to their highest level in 23 years.While the Russell 2000 index has surged by 5% in anticipation of the rate cut, not all small-cap stocks will benefit equally from the lower borrowing costs. So, which sectors should investors focus on, and which ETFs offer the best opportunities?Financial Sector: Rate Cuts Boost Financial FirmsSmall-cap financial companies, including regional banks, insurance firms, and lending instituti
Hello everyone! Today i want to share some trading ideas with you!1. $Shopify(SHOP)$ & $Amazon.com(AMZN)$ have announced an expansion of their partnership -- allowing customers to seamlessly purchase items with and without Prime benefits in a single checkout process 👀2. $Amazon.com(AMZN)$ & $PayPal(PYPL)$ have expanded their collaboration, integrating Buy with Prime with PayPal -- enabling Prime members to seamlessly use PayPal for purchases on participating merchants' websites 😏3. $CrowdStrike Holdings, Inc.(CRWD)$ has just launched AI Security Posture Management along
Hello everyone! Today i want to share some trading skills with you!1.7 cash flow ratios every investor should know: $SPDR S&P 500 ETF Trust(SPY)$ 2.Charlie Munger's checklist:3.Capitalization Explained SimplyCapitalization is when you spread out the cost of an asset over time instead of expense it all at once.There are 7 capitalization methods:4.Investing Abbreviations5.Purchasing power of the dollar, visualized.If this doesn't convince you to invest, I don't know what will.6.IFRS vs GAAP - CHEAT SHEETFollow me to learn more about analysis!!https://x.com/BrianFeroldi
Hello everyone! Today i want to share some trading ideas with you!1.8 Businesses with +15% EPS CAGR 5Y+15% ROCE 5Y Avg.+30% Price CAGR 5Y1. $HARVIA OYJ(HRVFF)$ 2. $PulteGroup(PHM)$ 3. $Addtech AB(ADDHY)$ 4. Lagercrantz AB 5. Auto Partner SA 6. $Williams-Sonoma(WSM)$ 7. $Comfort Systems USA(FIX)$ 8. Medpace Holdings2.Think Twice is a must read for investors:Follow me to learn more about analysis!!https://x.com/InvestInAssets
How to Safely Go Long on U.S. Treasuries in the Rate Cut Cycle?
In the early hours of September 19, the Fed announced a 50 basis point rate cut, marking its first reduction since March 2020.Since 1984, the U.S. has experienced six rate cut cycles:1984-1986: 26 cuts over 23 months, totaling 562.5 bps.1989-1992: 24 cuts over 38 months, totaling 681.25 bps.1995-1998: 7 cuts over 40 months, totaling 125 bps.2001-2003: 13 cuts over 29 months, totaling 550 bps.2007-2008: 10 cuts over 14 months, totaling 500 bps.2019-2020: 5 cuts over 7 months, totaling 225 bps.In all six cycles, the 10-year Treasury yield declined. After the rate cut cycle ended, the yield typically rebounded. Here’s how it breaks down:First Three Months Post-Cut: Anticipation of cuts leads to a notable drop in yields, and the decline was significantly higher than that of other stages, avera
Market OverviewU.S. stocks closed with modest losses on Wednesday, well off their intraday highs, after the Federal Reserve cut interest rates by 50 basis points, the high side of estimates for its first cut in more than four years.Regarding the options market, a total volume of 39,020,362 contracts was traded.Top 10 Option VolumesTop 10: $Nvidia(NVDA)$, $Tesla(TSLA)$, $Apple(AAPL)$, $Intel(INTC)$, $Broadcom(AVGO)$, $SoFi Technologies(SOFI)$, $Palantir(PLTR)$,
I opened $PANW VERTICAL 241025 PUT 320.0/PUT 315.0$ ,PANW price looks trending up smoothly. As price has retrace to $330, I decided to open this bull put spread with short call at $320. So long as price stays above $320 at expiry, the trade is profitable.
I opened $JPM VERTICAL 241115 CALL 215.0/CALL 225.0$ ,I think JPMorgan has formed higher lows in both the daily and weekly chart. So, I expect price to move up in the coming weeks. So, I have open this bull call spread. Will close the trade when the price reaches $225 or the position incurred a loss of $150.
$Palantir Technologies Inc.(PLTR)$ $PLTR 20250620 17.0 PUT$ $PLTR 20240920 21.0 PUT$ some people claim that Palantir has poor prospects because its products and services can be easily imitated. However, this is far from the truth. Palantir's strong economic moat is built on several key factors. First, its proprietary software is highly specialized, making it difficult for competitors to replicate. The company's deep integration with clients, particularly government agencies and large enterprises, fosters long-term relationships and contracts. These integrations are tailo
Hello everyone! Today i want to share some macro analysis with you!1.Fed's Powell Says Squarely Focused On Our Goals; Economy Strong Overall; Economy Is Strong Overall; Committed To Maintaining Economy's Strength; Fed Reduced Amount Of Policy Restraint Today; Our Decision Today Reflects Growing Confidence That Strength In Labor Market Can Be Maintained2. $S&P 500(.SPX)$ dropped 0.29% after FOMC. We saw 2 attempts at all time highs at 5670 this week. We can see one more shakeout in the 5568-5600 before the next run up to 5800+. One more day of consolidation possible then a big bounce on Friday can happen. Be patient 🙏📈3.TRADE PLAN for Thursday ✅ $S&P 500(.SPX)$ lower today after FOMC/Powell. SPX re
SPY, NVDA, GLD, BTC& PYPL Enjoy Great Potential Here!
Hello everyone! Today i want to share some technical analysis with you!1. $SPDR S&P 500 ETF Trust(SPY)$ Send it all the way back to 0% 2. $BTCUSD(BTCUSD.DBSCC)$ 8/21 EMA long strategy took another entry this week 🚨Blue line shows the mean change % after entry since the start of 2023:3. $PayPal(PYPL)$ continues to outperform the majority of stocks this quarter...Never thought I'd say that. 😆 4. $NVIDIA Corp(NVDA)$ The coil up continues. 🐍5. $SPDR Gold Shares(GLD)$ Gold absolutely loving that 50bps cut right now. 🥇Follow me to learn more about analysis!!https://x.com/Tre