💰3 Questions for Tigers After Fed's 50bps Rate Cut

THE FED DECISION IS OUT! The Fed shocked the world today.

Rates have been cut by 50 bps. It marked the first Fed decision since 2005 with a Fed member dissenting.

What should investors care about after first 50bps rate cut? @MaverickWealthBuilder

Rate Cut Trading 2｜landing or crashing？ how to grasp the interest rate cut cycle！ @Tiger_Academy

Here’s a visual overview of the Fed Funds Rate, including the latest cut:

@carbonfinancex

The $S&P 500(.SPX)$ rises to a new all time high after the Fed surprises markets and cuts rates by 50 basis points.

The index is now up a whopping 20% year-to-date.

Screenshot by @KobeissiLetter

After Wednesday trading, only the $Apple(AAPL)$ of MAG 7 become the winner.

💰After Fed's Decision, Who will be the King Winners among MAG7 Stocks?

Below are some more expectations after rate cut：

EY economist @GregDaco：

A 50 basis point rate cut isn’t a signal of any reason to panic, but I do think it's very important that the Fed and Fed Chair Powell, during the press conference, focus on a forward-looking framework, data dependency is done.

@Cointelegraph

Here’s everything that went down in today’s Fed Rate Cuts.
Fed cuts interest rates by 50 bps — first cut since 2020.
Two more rate cuts are expected in 2024.
One Fed governor dissented, favoring a 25 bps cut.
This is the first dissent since 2005.
Fed has "greater confidence" inflation is nearing 2%
Fed is waiting for inflation data and jobs report for their decision on next cut.

@FXN_Trading：

With the Fed cutting rates by 50 basis points, marking their first cut since March 2020, this is certainly one of the most surprising decisions since 2009. A cut of this magnitude could signal deeper concerns about the economy, and we’ll likely see significant market reactions in the days ahead. It’s going to be interesting to watch how this affects market sentiment, inflation expectations, and investor positioning moving forward.

@MarketMaestro1：

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Questions for Tigers:

How did your stocks performed on Wednesday after rate cut？

Did the rate cut change your plan on investing?

Will you hold more $USD Index(USDindex.FOREX)$ and buy $Micro 10-Year Yield - main 2409(10Ymain)$ $iShares 20+ Year Treasury Bond ETF(TLT)$ in long run?

50 bps! Ready to Embrace Rally or Sell the News?

On September 18, 2024, the Fed cut rates by 50 basis points to 4.75%-5%. This is the first cut since March 2022. The Fed forecasts a total of 100 basis points in cuts for 2024 and another 100 basis points in 2025. The Dow Jones and S&P 500 both hit record highs during the trading session but soon gave back some gains. All three major indices turned negative, with the Dow down 0.25%, the Nasdaq down 0.31%, and the S&P 500 down 0.29%. ---------------- Will 50bps continue to boost market higher or time to sell the fact?

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Comments

highhand
09-19 16:16
highhand
everything goes up. but big tech already went up a lot, so other stuff might go up more e.g. 10yr bond etf TLT, REITS, small caps who are sensitive to interest rates due to higher leverage. I'm not doing anything. already bought all these before the Fed reduced rates. now sit back and reap the rewards.
MasterStonker
09-19 19:21
MasterStonker
The answer to all is crypto