Taking history as a lesson! What will happen after each "50 basis points rate cut" by the Fed?
Nomura Securities pointed out that three months after the Federal Reserve cut interest rates by 50 basis points, small cap stocks surged, value stocks outperformed growth stocks again, metal prices soared, and the yield curve steepened, indicating a bullish market trend. The Federal Reserve has previously raised interest rates by 75 basis points multiple times, so it is not surprising to start a rate-cutting cycle with a 50 basis point cut, and it may not necessarily trigger market panic.
The bet on a 50 basis point interest rate cut is becoming increasingly significant, and there are also these reasons for not reducing interest rates substantially.
Dow Jones hit a new high, gold reached a new high, and the Japanese yen broke through the 140 level.
Ishares Iboxx $ High Yield Corporate Bond Etf Options Spot-On: On September 16th, 248.33K Contracts Were Traded, With 7.07 Million Open Interest
On September 16th ET, $Ishares Iboxx $ High Yield Corporate Bond Etf(HYG.US)$ had active options trading, with a total trading volume of 248.33K options for the day, of which put options accounted
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