The Market Brief
Hey team,
After the "wild swings" from the rate cuts yesterday, we find ourselves marching toward new ATHs, with global markets following the trend and the Globex session showing continued upside momentum.
Let’s recap yesterday’s session and see what’s next for the markets!
Impact Snapshot
🟥 Today: Unemployment Claims - 8:30am
Fed signals a further 50 basis points of reductions in 2024
Macro Viewpoint
Global stock markets surged following the Federal Reserve's decision to cut interest rates by 50 basis points, boosting investor confidence.
U.S. equity futures spiked, with S&P 500 contracts rising by 1.6%, positioning the index to challenge a new record high in the cash market.
This marked the Fed's first rate cut in over four years, along with projections signaling an additional 50 basis points of cuts in the two remaining policy meetings for the year.
Fed Chair Jerome Powell explained that making a significant cut while the U.S. economy remains strong could help reduce the risk of an economic downturn, as the central bank begins to unwind its historic tightening measures.