Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Bitcoin (CRYPTO: BTC) has plummeted below $109,000 after the expected Fed rate cut, prompting renewed debate over whether crypto traders once again fell for a "buy the rumor, sell the news" setup. What Happened: According to on-chain data provider Santiment, while the rate cut was widely expected, Jerome Powell's hawkish tone during the post-meeting press conference rattled markets. The Fed Chair cautioned ...

Group 1 - Short interest has decreased by 50% since the lows in April, indicating a potential shift in market sentiment [1][3] - Despite the covering activity, shares have not made significant progress since mid-June, suggesting a lack of upward momentum [1] - The recommended January put option has a leverage ratio of 4.2, which could double in value with a 21.1% decline in the underlying equity [1] Group 2 - Wireless networking stocks have closed below a trendline connecting higher lows since April and have breached their 200-day moving average, indicating bearish momentum [2] - The stock price is currently below $75, which corresponds to the lows of 2022, and has declined over 20% in 2025, suggesting ongoing challenges [2] - Skyworks Solutions, an Apple supplier, saw its stock peak on September 22 during the iPhone 17 rollout, but there are indications of a potential 'buy the rumor, sell the news' scenario developing [2][3]

Core Viewpoint - The stock market's forward-looking nature is highlighted by the adage "buy the rumor, sell the news," which was evident in Tesla's stock performance following the announcement of new lower-priced models [1] Group 1: Stock Performance - Tesla stock closed down 4.4% at $433.09 after the unveiling of the new lower-priced Standard Model 3 and Model Y products [1] - Shares of Tesla rose more than 5% on the preceding Monday after the company teased an announcement over the weekend [1] - The two-day stock movement resulted in Tesla shares being up approximately $3 for the week [1]

Core Insights - Solana is underperforming compared to major cryptocurrencies like Bitcoin, Ethereum, and XRP, primarily due to its vulnerability during market deleveraging and profit-taking phases [1] - Recent forced selling in Solana derivatives contracts amounted to $31.6 million, which is lower than Ethereum's $68.5 million and Bitcoin's $52.2 million [2] - The market's reaction to bullish news regarding Solana's treasury holdings was characterized by a "buy the rumor, sell the news" dynamic, leading to a correction in prices [4] Market Performance - Solana's price has dropped approximately 3% in the last day and over 9% in the past week, currently trading at $213 [2] - Predictors on Myriad are uncertain about Solana reaching a new all-time high before year-end, with current odds at 50-50 for surpassing the previous record of $293.31 by 2025 [5] External Factors - The upcoming distribution of $1.6 billion from the FTX Recovery Trust to creditors is impacting market sentiment negatively [6][7] - Despite the recent pullback from $250 to $210, the 15% decline is not considered extreme given Solana's previous rally of over 50% since early August [6]

Group 1 - Dogecoin is experiencing a decline of 6.7% in trading due to bearish momentum in the broader crypto market and a "buy the rumor, sell the news" dynamic [1][5] - The Federal Reserve's recent interest rate cut of 25 basis points did not lead to a rally in cryptocurrency valuations, disappointing investors who anticipated a larger cut of 50 basis points [4][7] - The launch of the REX-Osprey DOGE ETF has not resulted in significant valuation gains for Dogecoin, with the cryptocurrency seeing pullbacks before and after the ETF launch [5][7] Group 2 - Bitcoin and Ethereum also experienced declines, with Bitcoin down 2% and Ethereum down 3.3% over the same 24-hour period [1] - The lack of bullish momentum following the ETF launch and the Fed's rate cut has led some investors to reduce their exposure to the cryptocurrency market [2][4]

Group 1: Federal Reserve Meeting Insights - The Federal Reserve's Open Market Committee (FOMC) is expected to announce a 25-basis-point cut to the Fed funds rate, marking the first reduction since November 2024 [1] - Updated Fed projections may indicate slower U.S. economic growth and rising unemployment [1] - The FOMC meeting is considered one of the most significant of the year, with expectations for intense questioning of Fed Chair Jerome Powell regarding the U.S. economy and interest rates [1] Group 2: Precious Metals Market Reactions - Gold reached a record high and silver hit a 14-year high, likely influenced by anticipation of the Fed rate cut [4] - There is a possibility of a "buy the rumor, sell the fact" scenario in the gold and silver markets, suggesting a potential sell-off following the rate cut [4] - Despite current price corrections in gold and silver, the overall market sentiment remains bullish, indicating potential value-buying opportunities [5] Group 3: Currency Market Trends - The Euro is trading near a four-year high, while the U.S. dollar index hit a nine-week low, influenced by expectations of lower U.S. interest rates [7] - The anticipated rate cuts from the Federal Reserve suggest a continued downtrend for the U.S. dollar and an uptrend for the Euro in the coming weeks [7]

Market Reaction and Federal Reserve Impact - The stock market's reaction is heavily influenced by algorithms and Wall Street analysts, rather than solely by corporate earnings or Federal Reserve actions [1][2] - A potential rate cut by the Fed is expected to shift market conditions from "setup" to "buying" after the initial volatility following the announcement [2][3] - The market anticipates a rate cut with nearly 100% probability, leading to a "buy the rumor, sell the news" scenario [4] Interest Rates and Bond Market - The 10-year bond rate is nearing a significant drop below 4%, which would be the first time in over two years [5] - The behavior of the 10-year yield will significantly influence stock reactions, affecting consumer behavior and corporate borrowing capabilities [6] Stocks to Watch - **Caterpillar (CAT)**: Expected to benefit from lower rates as it provides financing to customers, potentially increasing business activity [7] - **JPMorgan Chase (JPM)**: Anticipated to gain from lower rates, although risks exist if the bond market reacts negatively [8][9] - **Microsoft (MSFT)**: While less directly impacted by Fed actions due to its strong credit rating, it could benefit from increased consumer spending if rates drop [10] Market Sentiment and Trading Behavior - Fed announcements have become critical events for traders, akin to major award shows, as they assess the potential impact on portfolios [11][12]

Group 1 - Major indexes attempted to build on last week's gains, driven by positive news from U.S.-China trade talks and anticipation of the Federal Reserve's meeting on interest rates [1] - The S&P 500 and Nasdaq reached new record highs, supported by strong performance in the tech sector and optimistic comments from President Trump regarding trade discussions with China [1] - U.S. and Chinese officials concluded another round of trade talks, addressing tariffs and the TikTok deadline, with Trump indicating potential for a TikTok ban if China continues to seek tariff relief [1] Group 2 - China's regulatory actions against Nvidia over antitrust issues led to a nearly 2% decline in Nvidia's shares, while Tesla's stock surged 7% following Elon Musk's significant stock purchase [2] - The market's recent performance followed a week of softer labor market data and stable inflation, increasing expectations for a Federal Reserve rate cut, with futures markets indicating a 96% probability for a quarter-point cut [2] - Bond yields decreased, the dollar fell to a two-month low, and the "Magnificent 7" tech stocks continued to outperform the broader market, indicating a narrow rally [3] Group 3 - The domestic Trend Tracking Index (TTI) showed a flat performance despite the tech sector's gains, while the international TTI displayed positive momentum [7] - As of September 15, 2025, the domestic TTI was 6.34% above its moving average, with a "Buy" signal effective from May 20, 2025, while the international TTI was 11.31% above its moving average, with a "Buy" signal effective from May 8, 2025 [7]