Fed Rate Cut Signals Strategy Shift; Trump & Xi Ease Trade Tensions - Bloomberg Surveillance https://t.co/Jj7cE920Op ...

Interest Rate Decisions - The Federal Reserve (Fed) cut the benchmark lending rate by 0.25 percentage point, setting the target range to 3.75%-4% [1] - Two dissents occurred: one favored a 0.5 percentage point cut, and another preferred no change [1] - The Fed's administered rates for interest on reserves and the primary credit rate mechanically decreased by 0.25 percentage point [2] Balance Sheet Adjustments - The Fed will stop redeeming maturing Treasury securities at the end of November, rolling over principal payments going forward [2] - The mortgage cap remains at $35 billion per month, but starting December 1st, all principal payments on maturing agencies will be reinvested in Treasury bills [3] Economic Assessment - Available indicators suggest that economic activity has been expanding at a moderate pace [3] - Job gains have slowed this year, and the unemployment rate has edged up but remained low through August [3] - Downside risks to employment rose in recent months, and uncertainty about the economic outlook remains elevated [4] - There is no change to the Fed's forward guidance; additional adjustments to the target rate will consider many factors [4]

Crypto Funds Pull in $921M on Fed Rate Cut Optimism► https://t.co/UxrlPnFMLh https://t.co/UxrlPnFMLh ...

Core Insights - The third-quarter earnings season is underway, with significant reports expected from major companies including five of the Magnificent 7 and Berkshire Hathaway [2] - So far, 29% of S&P 500 companies have reported, with 86% exceeding consensus earnings estimates, leading to a blended earnings growth rate of 9.2% year-over-year, surpassing the 7.9% expectation [3][4] - The Magnificent 7, which includes key tech companies, continues to be a focal point for earnings growth, although Tesla's recent earnings fell short of expectations [6][7] Earnings Performance - The S&P 500's earnings growth is primarily driven by positive surprises in the financials, information technology, and industrials sectors [7] - Notable contributors include Capital One Financial and Chubb in financials, Intel in technology, and RTX and GE Aerospace in industrials [8] Sales Growth - Sales growth is currently at 7.0%, exceeding expectations, with consumer discretionary and financials sectors being the main drivers [9] - The nominal GDP growth estimate for Q3 is 4.8%, indicating potential downside risks to sales growth if this estimate holds [9] Inflation and Economic Outlook - Recent consumer inflation data showed a year-over-year increase of 3% for both headline and core CPI, which was better than expected [10] - The Federal Reserve is anticipated to implement a 25 basis point rate cut, with markets also expecting further cuts in December [12][13] Market Dynamics - The ongoing government shutdown is affecting economic data releases, but the overall economy remains resilient, with recession odds for 2025 dropping to 4% [12] - The upcoming earnings reports from the Magnificent 7 are crucial for assessing the health of the AI boom and the broader technology sector [11]

‼️ Money market funds just hit an all-time high of $7.4 TRILLION99% chance the Fed cuts rates in 6 days.Rate cuts will push treasury holders to seek more risk, driving liquidity into Bitcoin and other assetsLiquidity tsunami incoming 🌊 🌊 🌊 https://t.co/LEozSuzd1g ...

BREAKING:MONEY-MARKET FUNDS AUM HAS HIT A NEW ATH OF $7.7 TRILLION.AS THE FED CUT RATES, THIS LIQUIDITY WILL FLOW INTO RISK-ON ASSETS LIKE CRYPTO. https://t.co/AZiVNgYzE7 ...

All right. So, uh, now they're at 6,800 directionally. Do you agree with that.That after the Fed rate cut, there's more upside for the market in this calendar year. Uh, and does it also extend to next year. I think that's the question a lot of people are trying to figure out.I think it does. I think the the extension into next year is absolutely there. We have two major catalyst playing out right now.One is the the Fed rate cut with expectations of more to come and that should extend the economic cycle. Um, ...

We got the first Fed rate cuts in almost a year. Thanks, Powell. December 2024 was the last time they did it. They cut it on the 25 basis points.So, it was pretty much as prediction markets predicted. Want to look at the the Fed fund rates over the a 10-year time horizon even longer. So, we've been up in the five range all the way from 2023 and then it sort of started to drop in the end of 2024 and then we've been hovering at this uh 4.25% range and now we're down another 25 basis points.So, it's not the 50 ...

⏰ 30 mins to goKraken (@krakenfx):Don’t miss Trading Spaces with @Dentoshi & @matthewbarby on Friday🎙️ Markets on Edge: Fed Rate Cut and the Crypto Reaction⏰ 11:00 AM ET https://t.co/PNBEWiW8jo ...

Group 1 - Investors in the bond market are adjusting their positioning following the Federal Reserve's shift in monetary policy [1]