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Market Awaits Fed's Rate Cut Decision
2024-09-16 09:00:08
Markets
Stocks
Economy

Market Awaits Fed's Rate Cut Decision

Investors are keenly watching the Federal Reserve's upcoming meeting, where a 0.25% interest rate cut is widely expected. This modest cut is anticipated to cause a mild market sell-off, while a larger 0.50% cut could trigger significant market volatility.

Fed Chair Jerome Powell is expected to signal a gradual approach to further cuts. The stock market has been buoyant, with the S&P 500 and Nasdaq posting their best weekly gains of the year, driven by optimism around rate cuts and artificial intelligence advancements.

Key stocks like Nvidia, Meta, and Microsoft have shown strong buy signals. Additionally, sectors such as financials, homebuilders, and energy have also performed well.

Investors are advised to remain cautious but consider buying opportunities, especially in stocks poised to benefit from lower interest rates.

Related news on that topic:

Markets Surge on Anticipation of Fed's Rate Cut

US stock markets experienced significant gains as investors anticipated a potential interest rate cut by the Federal Reserve. The Nasdaq gained over 5% this week, marking its best performance of the year, while the S&P 500 rose by 4% and the Dow Jones Industrial Average increased by 2%. The positive movement was fueled by a mix of cooling inflation data, with the Producer Price Index showing moderate increases, and rising initial jobless claims. This economic backdrop has led to heightened expectations of a dovish stance from the Fed, potentially resulting in a 0.25% rate cut. Consumer sentiment also hit a four-month high, as inflation expectations improved and household incomes rose. Despite some volatility, particularly in the tech sector, the overall market sentiment remains optimistic about the upcoming policy easing cycle.

US Stock Markets Surge Amid Anticipation of Fed Rate Cuts

The US stock markets have experienced a significant rally driven by the anticipation of a key interest rate cut by the Federal Reserve. The Dow Jones Industrial rose by 0.72%, and the Nasdaq 100 increased by 0.47%. This optimism is partly fueled by the European Central Bank's recent rate cut, which has stabilized the German Dax. The DekaBank forecasts further ECB rate cuts to around 2%. In the past, the Fed had aggressively raised rates to combat near double-digit inflation. As a result, investors are hopeful that the upcoming Fed meeting will bring a substantial rate cut, which could further boost the stock market. Leading stocks like Nvidia, Microsoft, and Meta have already shown remarkable gains, reflecting the market's positive sentiment. With the Fed meeting on the horizon, all eyes are on how substantial the rate cut will be and its impact on the market.

Read 19 more recent news on this topic

The press radar on this topic:

Yahoo Finance
16. September 2024 um 11:19

Dow Jones Futures: 25 Stocks In Buy Zones After Year's Best Week; Will Fed Go For Big Rate Cut? | Investor's Business Daily

Finance
Technology
Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The Federal Reserve meeting will take center stage, with policymakers set to cut rates for the first time since the Covid crisis in 2020. The stock market rally had a dramatic revival, with the S&P 500 and Nasdaq composite posting their best weekly gains of the year to reclaim their 50-day lines after selling off in the prior week. The S&P 500 and Dow Jones are close to all-time highs. A large number of..
seekingalpha
16. September 2024 um 01:46

Expect A .25% Cut And A Cautious Fed Statement, Buy The Dip

Economy
Finance
The text discusses expectations for a 0.25% interest rate cut by the Federal Reserve, and the potential market reaction. It suggests that a 0.50% cut could roil the market, and that Powell should stress a gradual cutting approach. The author believes the economy is still growing, and that a 0.25% cut would likely cause a mild sell-off. The author has taken some hedging positions, including in the 3X S&P 500 and 3X Nasdaq-100 ETFs, and is considering buying stocks that could benefit from lower..
CNBC
16. September 2024 um 01:04

CNBC Daily Open: After the Fed’s first cut, where to next?

Finance
Economy
Politics
Trump safe after assassination attempt; U.S. markets soared, China lags. Retailers face tariff crackdown. Fed to cut rates this week, but future path unclear; past hikes reached 5.25%-5.5% range, a 23-year high. Debate on 25 or 50 bps cut; "the first cut is the deepest". Bank of America economist Bhave doubts Fed will reveal much about policy path.
CoinDesk
16. September 2024 um 06:26

Bitcoin, Ether Plunge 5% Ahead of Widely-Anticipated Fed Rate Cuts

Cryptocurrencies & blockchain
Finance
Technology
Economy
Bitcoin, Ether down 5% ahead of Fed rate cuts; Crypto markets slump as traders expect 50bps or 25bps cuts; Ethereum faces competition from Solana, Base, TON; Sony's Soneium blockchain to offer USDC; Polymarket bettors see 51% chance of 50bps cut, 48% of 25bps; Futures traders lost $143 million; BTC ETFs see $263 million inflows, Ether ETFs $1.5 million; Nervos' CKB jumps 10.5%, BTC/ETH ratio at 4-year lows; Cardano's ADA down 5%, Solana's SOL down 4%, BNB Chain's BNB down 1.1%.
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