Thursday, the market climbed after the FOMC announced the first rate cuts in four years Wednesday. The S&P 500 and Dow closed in records, the S&P 500 hitting a closing high for the first time since July. $Tesla (TSLA.US)$ climbed 7%, $NVIDIA (NVDA.US)$ was up 5% at one point: the whole of the mag seven was reaching higher by more than $522B in market cap in tradding session according to Bloomberg data.
Just past 4 pm ET the $S&P 500 Index (.SPX.US)$ traded 1.70% the $Dow Jones Industrial Average (.DJI.US)$ climbed 1.26%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 2.51%.
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%.
Futures numbers tracked by CME FedWatch tool expected a 50 bp cut. Based on the Fed's dot plot of rate expectations, they put a midpoint rate target at about 4.4% by the end of 2024, meaning a range of about 4.20%-4.60%, or two 25 bps cuts at each of the next two meetings.
Tuesday, U.S. August retail numbers came out from the Census Beuro. They showed the total value of retail sales increased 0.1% month over month, and 'core' sales excluding food services, auto, building materials, and gasoline.
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Yesterday, users were unsure how rate cuts would really affect their investments.
Traders, what do you think, is the market in 2024 about following the herd? What you watching on the stock market today? What is the herd following? Let me know in the comments below!
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