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Can the Santa Claus rally happen after the Fed's hawkish cut?
On December 19th, $S&P 500 Index (.SPX.US)$ dropped 0.09% and $Nasdaq Composite Index (.IXIC.US)$ saw a decrease of 0.1%. Fed lowered the Fed Show More
On December 19th, $S&P 500 Index (.SPX.US)$ dropped 0.09% and $Nasdaq Composite Index (.IXIC.US)$ saw a decrease of 0.1%.
Fed lowered the Federal Funds rate by 25bp to a target of 4.25%-4.5% on Wednesday. The committee said they expected two cuts next year when their previous dot plot projection showed four rate cuts. Additionally, the magnitude of the rate cut needs to be reassessed due to significant disagreements among some officials.
🎙️Discussion
1. Do you think two rate cuts next year will be sufficient?
2. Will a hawkish shift in the Fed's stance cause severe market volatility?
3. Is now a good time to buy the dip?
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