Powell says no hurry for Fed rate cuts, how will you adjust your investment strategy?

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CasualInvestor joined discussion · 2 hours ago

Day 42: Rate Cuts + Core Retail Sales Data

Today’s markets are seeing a broad decline, with major tech stocks and the $S&P 500 Index (.SPX.US)$ dipping into the red. This movement comes on the heels of disappointing U.S. Core Retail Sales data, which showed a weaker-than-expected growth of 0.1% (against a forecasted 0.3%), suggesting that consumer spending may be slowing down.

🔍 What’s Driving the Decline?
• The lower-than-expected retail sales growth hints that consumer demand could be softening, which has raised concerns about the overall health of the economy.
• As a result, some investors are adopting a cautious stance, leading to a sell-off in high-growth tech stocks, including $Amazon (AMZN.US)$ (-2.94%), $NVIDIA (NVDA.US)$ (-2.10%), and $Meta Platforms (META.US)$ (-1.68%).

💼 Implications for the Fed’s Next Move
With today’s retail data showing signs of consumer caution, the Fed may come under increased pressure to consider more accommodative policies to support economic momentum. This could mean potential rate cuts or further measures aimed at boosting liquidity.

🧐 What’s Next?
The market is anxiously watching for the Fed’s response. Will this data be enough to prompt more supportive measures, or is this just a temporary dip before a holiday shopping rebound?