Market Musings 9/19/2024
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
Rate cuts are finally here, so what’s next?
The Fed finally announced #RateCuts at this week’s meeting.
Markets initially popped on release, but gave up gains before the end of the day.
So what’s going?
Well, investors got the bigger 50 bps cut they were looking for hence the early surge.
However, the future feels a bit uncertain and may have tempered the excitement.
Powell noted that the Fed was in no rush for cutting, yet still expects 2 more #RateCuts this year.
Investors may also be seconding guessing their initial euphoria as the Fed is often a bit slow to act and could the economy be actually be worst than expected driving the bigger cut?
So what now?
Well, it’s gonna be all about the macro data.
Markets will be looking for the #LaborMarkets to strengthen again, inflation progress to continue and improving macro data from consumer spending to manufacturing.
Remember #RateCuts will take time for impact, so we’re likely in for more near-term volatility as its works through economy before we’ll see if the Fed actually achieves the coveted #Goldilocks soft landing.
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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.
Original Photo by Michael Judkins.