The suspense of interest rate cuts has intensified! Market divergences before the Fed's decision.
There is a divergence in market expectations for interest rate cuts, and there may be a significant gap between pricing and actual results.
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 US economy is doing well, so why start cutting interest rates? The Wall Street Journal: The Federal Reserve is facing a complex situation.
Analysts believe that after the first interest rate cut on Wednesday, the Federal Reserve's monetary policy will remain restrictive. Although it is unclear whether it can stimulate the real estate market to become active again, it is expected to encourage companies to increase equipment investment.
It's surging again! The probability of the Fed cutting interest rates by 50 basis points this week has exceeded 50 percent.
Traders now believe that there is a higher probability of the Fed cutting interest rates by 50 basis points in September than by 25 basis points, but there is still one data that could disrupt the market before the results are announced...
Express News | Standard Chartered Bank warns: The Fed should not cut interest rates by 50 basis points.
Famous Wall Street bull: US stocks will rebound for several weeks after the Federal Reserve's September interest rate decision is announced.
According to the analysis by Fundstrat's research director Tom Lee, the stock market may experience a rebound lasting several weeks after the significant interest rate decision to be made by the Federal Reserve on Wednesday.