NVDA
NVIDIA
-- 139.670 TSLA
Tesla
-- 430.600 PLTR
Palantir
-- 80.690 AMD
Advanced Micro Devices
-- 124.600 RGTI
Rigetti Computing
-- 10.9600 
After FOMC, where should mooers go? Hear them out!
The Federal Reserve's recent meeting led to a significant drop in stock and Treasury markets, while the dollar hit its highest level since 2022.
The meeting's unexpectedly hawkish tone ![]()
was highlighted by four main points:
-Reduced expectations for rate cuts
-Increased projections for 2024 PCE inflation
-Clear signs of inflation risks
-Dissent among several committee members.
As anticipated, the Federal Open Market Committee (FOMC) cut the federal funds rate by 25 basis points to 4.25%–4.5%. ![]()
Chairman Jerome Powell emphasized in his press conference that monetary policy is now in a "new phase" focusing on a more cautious approach. Read more>>
How do Mooers feel about this rate cut and Powell's speech?
So, why did the market go down across the board after the meeting?
First off, the market was upset that the Fed is only going to do 2 cuts instead of 3 cuts in 2025. However, it's not just about the lack of cuts...it's about the lack of clarity around why they are cutting NOW. Inflation is on the rise and we can see that through CPI and PPI.
Many reporters tried asking Powell about this, but his argument was just that the labor market was weak. This was NOT enough of an argument to get the markets on board with justifying a cut and that could have been a reason they were upset.
$SPDR S&P 500 ETF (SPY.US)$ I'm kind of surprised by the reaction today. the .25% cut, expected. the economy is doing ok. so it makes sense to keep interest rates steady into 2025 with less rate cuts. I think the market will rebound sooner than later.
4. A Market Rotation Is About To Happen
See how stocks like $$NVIDIA (NVDA.US$$ inverses $$Tesla (TSLA.US$$ at the market open before the FOMC news kicked in. Check their capital flow for the past week and you’ll see they nearly, perfectly inverse each other. This is hot money movement.
Follow the money, don’t be the means to liquidation. Rotation is happening as we speak and NVDA will snap back very quickly at current oversold levels and that will chip away at TSLA.
After seeing all these ideas, what's your take on this FOMC meeting and its implication for the market? ![]()
Leave your comments here! Comments with more that 20 words will receive 33 points! And if Canadian mooers share your P/L after the FOMC meeting in our FOMC topic, you will receive 66 points!
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Brooklynnn : Acting like Powell knows how many rate cuts there are going to be next year
DanDha Brooklynnn : I think Powell’s strategy was the rile up everyone’s feathers because he is unsure of incoming policy.
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
In the event Trump’s policy has lower economical impact than forecasted, we get 3 rate cuts next year and spy rips the bears a new one
otherwise 2 cuts is business as usual
Lauren_investement DanDha : I had a completely different take but maybe I’m wrong. After increasing rates, Powell had to cut rates to prevent the market from stalling out. Now the market is heating back up too quick so Powell needs to choke the fire a little bit.
The goal of the fed is to slow down the economy, but gently.
Brooklyn Hey : This is a Christmas sale![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Jason Fung : The Fed is probably concerned about the impact that Trump’s economic policy might cause when he takes office in the new year. It is safer for the Fed to err on the side of caution at this time and not to promise too many rate cuts until he sees what Trump actually would do in January.
长线铁多头 : Show King Kong a bit to make him more restrained on stage.
102362254 : The recent FOMC meeting suggests a cautious approach, which could spark a short-term rally in the stock market as investors gain more certainty. However, the outlook for next year remains uncertain, with potential pauses in rate cuts and ongoing inflation concerns
71636490 : Don't forget the bond yields, particularly the 10yr went strait up following the FOMC data release which translates to: sellers of government bonds view 2 rate cuts along with the lack of clarification as being irresponsible. When the bond market disagrees with specific policies they push back and I'd say this was a clear demonstration of them flexing their muscles...
73372627 : I was afraid that Powell will take the hard line on current administration at this FOMC, and I was correct.
The inflation will show biger in the begin of the next year because will be realy inflation which was hide from long time. In normal conditions 2 rates cut/year is normal. Me I see 3 rate cuts next year. After the first 4 to 6 months we will see big drop in unemploy and inflation drop. The speach was also to support the debs sealling been approuve because this it is the only leverage left for the Dems to block future bills.
This I think was the last move of the administration to hit the economy and in special the small and medium entreprises. Put in fear the investing community was his revenge against his job lose. Him know that the more printing money and uncalculated spending era come to the end on January 20, 2025.
Interesting to see if the new administration will go to strenght the dollard by backing up also with gold and silver.
Triggering this masive selloff Powel just hit small and medium small investors and strenght the large and XLarge investors. The market was put in recuperation mode which IMHO will go till the end of the year.
Happy New Year to all and Merry Christmans.
Meme_Short_Queen : inflation will be 200% coming back and bite us all. By TLT and USD now before they sky rocket too the moon!
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