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Another 25bp Rate Cut! What's next for the market?
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Wall Street Today | FOMC Cuts Bring Spiking Highs

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Moomoo Recap US joined discussion · Sep 18 15:18
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.
Wall Street Today | FOMC Cuts Bring Spiking Highs
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.
Wall Street Today | FOMC Cuts Bring Spiking Highs
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.
Wall Street Today | FOMC Cuts Bring Spiking Highs
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.
$Crude Oil Futures(JAN5) (CLmain.US)$ fell slightly after climbing Tuesday on news of explosions in Lebanon.
$Bitcoin (BTC.CC)$ fell back below $60k.
Interested in Options? To see these stocks and more on the options page, click here. Want to learn more about options, check out moomoo education with this link. Click here to join our exclusive options chat with personal callouts from our resident expert, Invest with Sarge.
Word from the herd: Mooers, what are you watching?
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