How long the celebratory mood will continue in the US financial market - valuation is the challenge.

Updated on September 21, 2024, 11:50 JST (excerpt)
The easing measures taken by the US financial authorities are supporting the economic outlook.
Stock and bond prices exceed the levels at the start of the past 14 easing periods - model.
For Wall Street traders who appear to be increasingly inclined towards speculative trading, the 0.5 percentage point rate cut by the US financial authorities has become a confirmation of the correctness of such trading strategies.
However, as the US financial authorities move to ease measures to support the economic outlook, another variable that moves the market, valuation, has emerged as a greater challenge in determining how long the market's celebratory mood will continue.
This week, the actions of central banks have settled in favor of the bullish camp. US stocks reached record highs again, commodity prices surged once more, and volatility in the US bond market decreased. The 2-week rate of increase in the Nasdaq 100 index was the highest since November last year. Concerns in the market about the US financial authorities taking too long to end their two-year fight against inflation have been dispelled.