If the Fed really cuts interest rates by 50 basis points, the US stock market may go haywire.

robot
Abstract generation in progress

On September 18th, Jin10 Data reported that the Fluctuation caused by the debate surrounding a 25 basis point or 50 basis point rate cut may be what the S&P 500 needs to close at a new high. Jim Reid of Deutsche Bank presented some convincing facts about the prosperity of the US stock market, supporting the view of the bank's economists that the Fed will implement a smaller rate cut today. Given that the market has set a record for betting on a 50 basis point rate cut, this decision will trigger a large Fluctuation. Looking back at the Fed's rate cut cycles since 1957, the S&P 500 index was the strongest in the year before this cycle began. Therefore, it is unusual to relax monetary policy against such a strong stock market background. Therefore, when the Fed cuts rates today, it will enter a loose cycle in at least the most prosperous stock market in 67 years. In fact, yesterday was the seventh consecutive day of pump in the stock market, and the S&P 500 index also hit a new high in intraday trading. If the Fed had cut rates by 50 basis points from the beginning, given the background of the first time in nearly 70 years, this move would be even more dramatic.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 1
  • Share
Comment
0/400
LuckyDoraemonvip
· 2024-09-18 13:58
All in All in 🙌
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)