Group 1 - The Federal Reserve has lowered the federal funds rate by 25 basis points, marking the first rate cut since 2025, with indications of two more cuts within the year according to the latest dot plot [1] - Morgan Stanley suggests investors can capitalize on the Fed's new round of policy easing through various strategies, including buying call options on emerging market ETFs, gold ETFs, and mining sector ETFs [1] - Concerns over high equity financing costs at year-end provide opportunities for investors to sell S&P 500 futures or swap contracts while buying baskets of stocks or ETFs in the spot market for potential gains [1] Group 2 - Morgan Stanley notes that structured products show higher spot trading compared to peak vega levels, with most risks still linked to the Russell 2000 index [2] - The firm continues to recommend a long position in a 1-year RTX 60% upside variance portfolio while shorting a 1-year SPX variance portfolio to profit from high convexity [2] - The Chicago Board Options Exchange plans to launch "Magnificent 10" index futures and options in Q4, aimed at meeting investor demand for hedging or speculating on concentrated market performance, particularly in the tech sector [2]