The Market Brief
Hey team. We find ourselves at new all-time highs following the crucial rate cut decision, with traders and investors digesting this week’s economic releases.
Let’s do a market recap and see what’s next!
Impact Snapshot
S&P 500 sets 39th record high of 2024 in wake of Fed’s move
Friday’s US options expiration will see volatility to close the week
Macro Viewpoint
European stocks fell, and US equity futures slipped on Friday as disappointing earnings news dampened enthusiasm over interest rate expectations.
Despite this, unemployment data and the Federal Reserve’s recent half-point rate cut on Wednesday bolstered investor sentiment, raising hopes for a soft landing in the economy.
The Fed has indicated the possibility of further rate reductions this year, which has helped build confidence in market stability.
Additionally, the expiration of derivatives contracts tied to stocks, index options, and futures may amplify market volatility.
This options expiry coincides with the rebalancing of benchmark indexes, a period known for causing sudden price fluctuations as traders adjust their positions.
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