Wall Street Today | FOMC Cuts Bring Spiking Highs
The market spiked to all-time highs after the FOMC announced they would cut the target Fed Funds rate by 50 basis points. It is the first rate cut since 2020, and after the spike, indexes and equities fell for the day.
At around 2:02 pm ET, the S&P 500 and Dow spiked to an all-time high, 7300 equities climbed, and Gold to USD $XAU/USD (XAUUSD.CFD)$ hit an all-time high past $2,597/troy ounce.
Just past 4 pm ET the $S&P 500 Index (.SPX.US)$ traded lower by 29 bps, the $Dow Jones Industrial Average (.DJI.US)$ fell 0.25%, and the $Nasdaq Composite Index (.IXIC.US)$ fell 0.31%.
MACRO
The Federal Open Market Committee lowered the target Federal Funds rate 50 basis points, citing the progress in inflation and slowing job gains. Policymakers took the rate to a range of 4.75 to 5%, noting that the committee has gained greater confidence that inflation is moving sustainably toward 2%.
At the same time, the Fed's so-called dot plot showed policymakers forecast the median key interest rate ending 2024 at 4.4%, before declining to 3.4% by the close of next year. At 2:30, Fed Chairman Jerome Powell will address reporters at a press conference. Click the link below to watch the event live on moomoo.
The CME FedWatch tool priced in a higher 'chance' of a 50-point cut.
On Monday, Former President of the New York Federal Reserve Bill Dudley wrote in Bloomberg Opinion that the FED should go for larger cuts on Wednesday, and his prediction was prooved correct.
SECTORS
Gold hit a new all-time intraday high Wednesday after the Federal Reserve cut its benchmark interest rate for the first time in four years. $XAU/USD (XAUUSD.CFD)$ rose to $2,600 at its intraday height at 2:35 pm ET.
Markets had generally only expected the Fed to ease by 25 basis points as part of a bid to juice up the U.S. economy amid potentially slowing job growth and moderating inflation. The Fed had kept interest rates rising or at high levels for more than two years after inflation shot up in following the COVID-19 pandemic.
However, increasing signals in recent weeks that the Fed would reverse gears and cut rates had sent gold prices higher amid a belief that the central bank would end its hawkish inflation stance.
Investors traditionally use gold as an inflation hedge, so higher inflation risks can send the metal’s price higher.
MOOVERS
Shares of $Intuitive Machines (LUNR.US)$ are skyrocketing as much as 58% Wednesday, lifted by the award of a NASA contract that could be worth up to $4.82 billion. Late Tuesday, Intuitive Machines announced that NASA had awarded the company the Near Space Network contract for communication and navigation services for missions in the near-space region, which extends from Earth's surface to beyond the Moon.
$ResMed (RMD.US)$ fell nearly 8% at open Wednesday after a downgrade from Wolfe Research to $180. The medical device firm may face competition on sleep apnea from a recently FDA-approved Apple watch sleep apnea service that will launch with the new Apple watch this month, according to a press release Monday.
$Applied Therapeutics (APLT.US)$ jumped 71% Wednesday morning, one of the highest on the market, over $1B in market cap, after their genetic disorder treatment completed a late-cycle review meeting with the FDA.
$Crude Oil Futures(NOV4) (CLmain.US)$ fell slightly after climbing Tuesday on news of explosions in Lebanon.
$Bitcoin (BTC.CC)$ fell back below $60k.
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Word from the herd: Mooers, what are you watching?
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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54088 FROM MBS : haiz
Gilley : no it didn't I bought calls and it tank it didn't go up it went red asf now im sure it will go green since they screwed the public hard asf
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身骑白马 : good
john song : looking forward to more rate cuts