Dow & SPX Hit ATH, Tech Stocks Surge Post-Rate Cut
The Fed's significant rate cut boosted confidence that the central bank will keep the U.S. economy expanding. On Thursday, U.S. stocks rose sharply, with the $DJIA(.DJI)$ jumping over 500 points and the $S&P 500(.SPX)$ closing above 5,700 for the first time, both setting historical records. This marked the Fed's first rate cut in four years, leading the market to believe it can help the economy avoid a recession.Prevent Recession, Stocks ExplodingAdam Crisafulli, founder of Vital Knowledge, remarked, “As the market digests this major Fed cut, stocks are exploding. I foresee a strong market leading up to the presidential election.”This larger-than-expected cut surprised many investors. Jeremy Siegel, a
The Federal Reserve just announced a 50 basis point (bps) rate cut, and I’m feeling optimistic about the stock market’s future. This move signals the Fed’s commitment to supporting economic growth, and it’s great news for investors. A 50bps cut means lower borrowing costs for businesses, which can spur investments, expansion, and hiring. When companies can borrow at cheaper rates, they tend to invest more in growth, driving up profits and, ultimately, stock prices. Additionally, lower rates make bonds less attractive, so more money could flow into stocks, pushing prices higher. We’ve already seen strong market momentum in recent months, and this rate cut could be the fuel to keep things going. Lower rates also tend to boost consumer spending, which benefits companies across sectors. With t
WARREN BUFFET JUST SOLD ANOTHER 22M SHARES OF BANK OF AMERICA $BAC He has now sold $7B worth of this stock in the past 5 months… 3 reasons I think he’s selling: 1.) He’s up a decent amount in the past decade since he’s owned the stock.$Bank of America(BAC)$ is also up 22% YTD and he may think the company has been fully priced for rate cuts. 2.) He may want to get his sells in before tax rates are raised and lock in cheaper tax rates right now on profits. 3.) He continues to want to raise cash, now closing on $300B in cash on the side for him…
Although I missed the great boat of opportunity of YZJ 🥹 earlier this May for SIA but overall it's been a good year so far. 🤞🏻 DBS has always been stellar, never disappoints.
$SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $Microsoft(MSFT)$ $Meta Platforms, Inc.(META)$ 📈 $SPY MASSIVE BULL GAP OPENED! • Bulls loved the 50bps and narrative from Powell. • The way he explained the reason for the 50bps was absolutely bullish. • Watch $VIX drop off under 16.20 and march towards 15 in the next few weeks. • A higher low cultivation would be amazing into OPEX tomorrow which is the best worst day of the year generally speaking based off seasonality. •
The stock market on Thursday (19 Sep) gave a decisive strong performance. The S&P 500 up +1.70% and DJIA up +1.26% both reached new all-time highs, while NASDAQ recorded the highest +2.51%. Thursday rally responded to decision by FOCM on Wednesday to cut the target rate for the fed funds rate by 50 basis points to 4.75-5.00%. Thursday's gains also reflected a belief that the economy is in good shape and the Fed will cut rates as needed to maintain a solid economic backdrop. And Thursday economic data also supported this optimistic view. Weekly jobless claims remain steady below recession-like levels. The Philadelphia Fed Index tipped back into expansion (i.e., above 0.0 reading) in September. Existing home sales were slightly below expectations in August but still reflected a tight m
$iShares 20+ Year Treasury Bond ETF(TLT)$ $ARK Innovation ETF(ARKK)$ The recent interest rate cut by the Federal Reserve can have different impacts on TLT (iShares 20+ Year Treasury Bond ETF) and ARKK (ARK Innovation ETF), so your choice depends on your investment goals and risk tolerance. TLT (iShares 20+ Year Treasury Bond ETF) - Interest Rate Sensitivity: TLT is highly sensitive to interest rate changes. When interest rates fall, the price of long-term bonds typically rises, which can benefit TLT. This makes TLT a good option if you expect rates to continue falling. - Stability: TLT is generally considered a safer investment com
Options Market Statistics: Tesla Stock Surges, Options Pop Following Federal Reserve's Interest Rate Cut $Tesla Motors(TSLA)$ shares surged 7.36% Thursday to close at $243.92, with option volume of 2.69 million, and calls accounted for 58.3% of the volume. The $235 calls expiring September 20 were traded most actively. Tesla's stock surged on Thursday, influenced by the Federal Reserve's decision to cut short-term interest rates by 0.5 percentage points. This rate cut, which was more aggressive than anticipated, is expected to benefit high-growth companies like Tesla. Lower interest rates make car financing more affordable, potentially increasing demand for cars and boosting auto stocks. Despite this,&nbs
SG Morning Call | Singapore Stocks Opened Lower on Wednesday; Sembcorp to Acquire 30% Interest in Senoko Energy
Market SnapshotSingapore stocks opened lower on Wednesday. STI fell 0.5%; Sembcorp rose 1.4%; LMIRT fell 4.4%; SIA rose 0.6%; SingPost fell 1%.Stocks to WatchSembcorp: The group’s subsidiary Sembcorp Utilities agreed to acquire a 30 per cent interest in energy supplier Senoko Energy for an undisclosed sum in a purchase agreement signed with energy solutions provider Engie Global Developments, said Sembcorp on Tuesday. The acquisition will not have a material impact on Sembcorp’s net tangible assets per share for the current fiscal year ending Dec 31. Shares of Sembcorp closed S$0.06 or 1.2 per cent higher at S$5.19, before the announcement.Lippo Malls Indonesia Retail Trust (LMIRT): Two rating agencies, Moody’s Investor Service and Fitch, withdrew the real estate investment trust’s credit
Fed’s Blindside Curve Ball. In a “strange” turn of event, US stocks finished lower after the Fed voted to cut interest rates by -0.5%, opting for a more aggressive reduction than investors had been expecting just a week ago. Although traders had anticipated a rate cut, they had been left guessing about the size of the move. A week ago, traders were fairly confident that the Fed would cut by the traditional -0.25%. That consensus vanished in recent days, with many expecting a larger cut, but there was still a large amount of uncertainty heading into the Fed’s decision. All but one (Michelle Bowman) of the 12 Fed voters supported the cut, that brought the Fed funds rate to the newly revised range of between 4.75% & 5%. Fed Dot Plot. At the same time the FOMC confirmed interest cut, the S
Potential Upside From AMD To Continue Due to Upbeat PC-Chip Trends
The Federal Reserve kicked off an easing cycle with a 50 basis-point interest rate cut to keep US economic growth on track. $NVIDIA Corp(NVDA)$ and $Advanced Micro Devices(AMD)$ led the tech stock rally Thursday following the Federal Reserve’s sizable 50 basis point interest rate cut. Nvidia stock jumped more than 5%, while its rival Advanced Micro Devices saw shares rise as much as 7% in afternoon trading, before edging down slightly to close the day. The rising stock prices illustrate that investors are comprehending Fed Chair Jerome Powell’s message that the US economy is “in good shape.” The tech-heavy NASDAQ led the stock market’s upward trajectory. The index rose 2.5%, while the S&P 500 rose 1.7%
Capitaland Ascott Trust Is An Undervalued SReit Lodging Giant
🌟🌟🌟Capitaland Ascott Trust (CLAS)$CapLand Ascott T(HMN.SI)$ is the largest lodging trust in Asia Pacific with an asset value of SGD 8.5 billion as at 30 June 2024. CLAS has just hit a 52 week high on Thursday with news that the Feds has finally cut interest rate by 50 basis points. CLAS' primary objective is to invest in income producing real estate and real estate related assets which are used predominantly as serviced residences, rental housing properties, student accommodation and other hospitality assets in the world. CLAS has an impressive portfolio of 102 properties with more than 18,000 units in 45 cities across 16 countries in Asia Pacific, Europe and the US as at 30 June 2024.
The Fed is expected to continue its rate cut cycle until 2026, which will bring multiple benefits to consumers and businesses. $Amazon.com(AMZN)$ could be a significant beneficiary of this trend, potentially continuing its long-term upward trajectory.A Look Back at Q2 EarningsWhen Amazon reported its second-quarter earnings in early August, the results were a mixed bag. While revenue grew slightly over 10% year-over-year, it missed the mark by nearly $800 million. The guidance for the current quarter was also somewhat tepid.However, the company's net income nearly doubled to about $13.5 billion, driven partly by a surge in cash flow. As of June 30, Amazon's net cash position exceeded $26 billion. With over $89 billion in cash and securities, and
Coca-Cola Co (NYSE: KO) started a new bullish cycle on October 2023. As discussed in our previous article, the stock rallied from our blue box area after ending a corrective double three structure. The impulsive rally suggested the start of wave III to the upside and this year KO managed to break above 2022 into new all time highs. KO Daily Chart 12.2.2023 KO Daily 12.2.2023 The stock is currently showing 3 swings up from 2020 low and consequence it’s considered as an incomplete bullish sequence looking to do a 5 waves advance. It’s currently trading within wave ((3)) of III and it will be looking to end rally from 2023 before starting 3 waves pullback in wave IV. KO still has a weekly target to the upside at equal legs area $82.5 – $89.8. Buyers will continue to buy the stock during pullb
Which asset would you choose after Fed's 50bps rate cut?
Yesterday, after Fed announced a 50bps rate cut, US stocks experienced a roller-coaster ride. Powell’s speech suggests that the 25bps intended for July could be included in the September cut. However, Powell also expressed a hawkish stance, indicating that the Fed won’t continue cutting rates at this pace.50 bps rate cut is a significant catalyst for the market.The most likely beneficiaries of the rate cut are U.S. Treasury bonds and small-cap growth stocks. BU.S. Treasury prices have a predictable upward trajectory. However, $iShares 20+ Year Treasury Bond ETF(TLT)$ closed at $99 yesterday, presenting a good buying opportunity.Moreover, lower borrowing costs for small and medium-sized companies will improve their profitability. As a result,
Fed Rate Cut: How Wall Street Interprets the Development
The US Federal Reserve (US Fed) has cut the target range for the federal funds rate by 50 basis points (bps), from 5.25 - 5.5% earlier to 4.75 - 5.00% on Wednesday, the first time since 2020. The cut comes amid concerns regarding the job market in the US, and ahead of the US presidential elections in November 2024.Policymakers, according to reports, expect the Fed's benchmark to fall another half of a percentage point by 2024-end, and another one per cent in 2025.After this move, analysts expect the US central bank to now go slow on its rate cutting trajectory, remain data dependent, and also watch the outcome of the US presidential polls on November 5.U.S. futures jumped on Thursday. Dow Futures rose nearly 1%, Nasdaq 100 futures rose nearly 2%, S&P 500 futures rose more than 1%.The l
Selling covered call options (sell covered call) is a strategy adopted by many large funds. It can also be used by retail investors in the US stock market.You can get income while holding it. This strategy is very suitable for stocks that have long-term positions, but they have not moved but they are not in a bearish position recently or are in a bearish position recently. It can be a good strategy for mature investors to roll over when holding some targets for a long time. Income comparison Assume that investors hold 200 shares of Amazon from January 1 to December 17, 2021 If there is no operation during the holding period, the final total assets will be USD 675,484 If the covered call strategy is carried out, it will be operated once a week; if 100 shares are sold after the exercise, ano
F1 Night Race Coming! Stocks and Race Plan to Watch?
This week, Singapore is set to host a major event once again! The highly anticipated Singapore Night F1 will take place from September 20 to 22 at Marina Bay.As the first-ever night race in F1 history, the Singapore Grand Prix stands out from other races. The Marina Bay street circuit is renowned for its waterfront design and iconic cityscape.As drivers race around the 4.94-kilometer track, they will pass some of Singapore's most famous landmarks, including the Singapore Flyer, Esplanade Theatres on the Bay, and Marina Bay Sands.The race will be accompanied by a spectacular fireworks display, adding to the thrilling atmosphere! After the race, you can discuss the exciting event at nearby bars and restaurants, with a chance to spot celebrities and influencers.Besides buying tickets, where e
Fed Cuts 50bps,🎉STI Towards 17Yrs High, Open Cash Boost Account Now!🥳
Hi Tigers[Heart][Heart][Heart]The Federal Reserve's 50bps interest rate cut has landed! The $Straits Times Index(STI.SI)$ is heading towards a 17-year high!Check out the top SREITs and chip stocks yields to capitalize on the wave of high dividends.And it's the right time to take advantage of the CBA account![Allin][Allin][Allin][USD][USD][USD]On September 18, 2024, the Federal Reserve announced a 50 bps cut in the target range for the federal funds rate, bringing it down to between 4.75% and 5.00%.However, the Monetary Authority of Singapore has not yet followed the United States' lead in cutting interest rates, instead choosing to maintain its current monetary policy unchang