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

The market widely anticipates that the Fed will cut rates for the first time this cycle. Historically, rate cuts can lead to very different outcomes for various asset classes and sectors, depending on whether the economy enters a recession or avoids one.If a recession occurs, U.S. stocks typically drop an average of 4% within 12 months of the first rate cut. However, if the economy avoids a recession, stocks usually rise by about 18%. This means the broader macroeconomic scenario after the initial rate cut becomes more crucial than the cut itself.In a recessionary environment, fixed-income assets like U.S. Treasuries generally outperform stocks. Regardless of whether the investment horizon is 3, 6, or 12 months post-cut, U.S. Treasuries consistently perform better than stocks. This makes g

After the August CPI report, Nick Timiraos, known as the Fed’s "mouthpiece," wrote that the inflation rate dropped to a three-year low in August. This decrease might prompt the Fed to start gradually cutting rates at next week’s meeting.According to the Labor Department, August’s CPI rose by 2.5% year-over-year, down from 2.9% in July, marking the fifth consecutive month of cooling. Core CPI, which excludes volatile food and energy costs, remained steady at 3.2%.Despite a stronger-than-expected housing inflation in August, which could complicate a larger 50-basis-point cut, traders are betting on a more gradual policy easing by the Fed.Most Fed officials have signaled they’re ready to cut rates, and the CPI report isn’t expected to change that. This inflation relief offers some breathing r

During the interest rate cut cycle, U.S. tech stocks typically benefit from several factors: lower financing costs, higher valuations, capital flows into tech stocks, weaker Dollar, boost technological innovation and M&A activities, stimulated consumer demand, and improved market sentiment. Based on this backdrop, several options strategies can be utilized to capitalize on these trends.Impact of Rate Cuts on Tech Stocks 1. Lower Financing Costs Rate cuts reduce financing costs, which is great for high-growth tech companies that need funding for R&D, market expansion, and innovation.2. Increased ValuationsLower rates decrease discount rates, boosting the present value of future cash flows and thus raising tech stock valuations.3. Capital Flows Into Tech StocksAs yields on fixed-inco

Deutsche Bank has recently issued a rare bullish report on $Tesla Motors(TSLA)$ , upgrading its rating to "Buy" and naming it a top pick in the automotive sector. Previously, the bank had maintained a "Neutral" stance on Tesla. Deutsche Bank has also reinstated its price target for Tesla, setting it at $295.Tesla Technology PlatformDeutsche Bank viewed Tesla as a tech platform with the potential to transform multiple industries. Analyst Edison Yu highlighted the company's potential in autonomous driving and humanoid robots as reasons for its unique premium. Additionally, Tesla's energy storage business is seen as reaching a significant growth and profitability inflection point, with expected sales of $13 billion by 2025.Analysts forecast Tesla wil

After a nearly two-month hiatus, the famous retail trader "Roaring Kitty," aka Keith Gill, made a comeback. His first post in a while on X was a cryptic image from the 1999 film “Toy Story 2”. The image, altered to show a dog's face on Woody, the cowboy toy, quickly caught the attention of retail investors.Gill’s post sparked significant movement in the stocks of $GameStop(GME)$ and $Chewy, Inc.(CHWY)$. On Friday, GameStop's share price surged by as much as 9% after the post, ultimately closing up 6.8% at $23.92.$550,000 in 40 minutesAccording to LSEG data, about 18 minutes before Gill’s post, a trader bought roughly 10,000 GameStop call options expiring on September 13 with a strike price of $22.5, totali

$Oracle(ORCL)$ will release its Q1 FY2025 earnings after hours on Monday. Investors are likely to focus on cloud infrastructure growth. According to Visible Alpha, analysts expect the software giant to report revenue of $13.23 billion, up over 6% year-over-year. EPS is expected to be $0.91, compared to $0.86 last year; net income is anticipated to be $2.57 billion.In June, Oracle announced cloud infrastructure deals with $Microsoft(MSFT)$ , OpenAI, and $Alphabet(GOOG)$ $Alphabet(GOOGL)$ while reporting Q4 earnings, pushing its stock to a record high. Oracle’s stock dipped slightly last Friday but has risen about 35% thi

$NVIDIA Corp(NVDA)$ has recently faced a sharp decline, with its stock dropping over 17% in just nine trading days, wiping out nearly $550 billion in market value and shaking up the US stock market. Nvidia's 30-day volatility has reached its highest level since mid-2022.Wall Street analysts are questioning: Is now the right time to buy Nvidia on the dip?Here are the five main reasons behind the Plunge:1. Antitrust Risks: The US DOJ has issued subpoenas to Nvidia and related parties to investigate possible antitrust violations. Although Nvidia denies receiving the subpoenas, concerns about increased regulatory scrutiny in the AI sector are weighing on the stock.2. Chip Release Delays: Nvidia’s new AI chip, Blackwell, has been delayed due to design

The calm in the U.S. stock market was shattered on Tuesday, with the $S&P 500(.SPX)$ plunging over 2% and the $Cboe Volatility Index(VIX)$ soaring. This volatility spike netted an options trader around $12 million in profits by Friday night.The $Cboe Volatility Index(VIX)$ jumped due to a tech stock sell-off dragging down the $S&P 500(.SPX)$ . $NVIDIA Corp(NVDA)$ gapped down 2.8% and continued to slide, ending 9.5% lower at a three-week low of $108, shrinking its market cap by $279 billion.On Friday night, an investor spent nearly $9 million buying 350,000

After the market closes on August 28, $NVIDIA Corp(NVDA)$ the AI chip giant, will release its Q2 2025 earnings report. This report is crucial for investors to gauge whether U.S. companies are still heavily investing in AI technology, and it is one of the most significant tech earnings reports this season. It will determine if the AI trade continues.Analysts expect NVIDIA to report Q2 revenue of $28.639 billion, up 112.03% year-over-year, and earnings per share of $0.60, up 141.49%.Bloomberg forecasts that NVIDIA's critical Data Center segment will achieve $25.023 billion in revenue, up 142.40% yoy, making up 87% of total revenue, up from 86% last quarter. The Gaming segment is expected to generate $2.793 billion, a 12.34% increase.Read More>>

"Black Myth: Wukong" has taken the global gaming market by storm, breaking records across all platforms. According to the national game sales rankings, it has sold over 3 million copies on Steam alone, with total sales exceeding 4.5 million copies and revenue topping ¥1.5 billion. High expectations for "Black Myth: Wukong" were highlighted by Goldman Sachs, which called it a significant turning point for the Chinese console game industry and a key step for Chinese games on the global stage. This success may spur increased investment in Chinese games, especially in the 3A category.Goldman Sachs believes that $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$ and $NTES