Fed starts aggressive 50-basis-point rate cut 19/09/2024

US Pre-Market

Futures: The S&P 500 is up 0.10 %, the Dow Jones Industrial Average is up 0.10%, and the Nasdaq 100 is up 0.08%.
U.S. stock futures rose early Thursday as traders processed the Federal Reserve's recent decision to cut interest rates by half a percentage point.
Small and midcap stocks held onto gains on Wednesday, while large-cap stocks ended the day lower, according to FactSet data.
Watchlist for today: FDX, DRI, LEN, JPM, CBRL, FDS, NVDA, MSFT

Bitcoin

Bitcoin surged past $61,000 after the U.S. Federal Reserve’s decision to lower interest rates by 50 basis points. Not only Robert Kiyosaki, but BlackRock also views Bitcoin as a crucial asset for long-term portfolio diversification. A recent report from BlackRock highlights Bitcoin's potential as a key asset class, especially as investors seek alternative stores of value in uncertain economic environments. With growing institutional adoption, Bitcoin is gaining traction among traditional financial players as a viable option for diversifying portfolios and managing risks in the evolving financial landscape.
Watchlist: Bitcoin: 58 200-62 650 Ethereum: 2250-2475, Solana: 128.3 -140.20
 

Forex Market

The USD/JPY pair continues to move within a corrective phase and remains inside a descending channel. A potential bearish signal comes from testing the resistance line on the relative strength index, with another signal being a rebound from the channel’s upper boundary. Meanwhile, USD/CAD surged during the Asian session following the Fed’s interest rate decision, which caused considerable market volatility. Similarly, EUR/USD started the day with strong upward momentum. Whatchlits: EUR/USD: 1.1065-1.1121, USD/JPY: 139.88 -141.70
 

Basic Materials

Oil and gold prices rose following the Fed’s jumbo rate cut. The larger-than-expected interest rate reduction led to increased market activity, pushing both commodities higher. Oil benefited from the potential boost in demand as lower borrowing costs typically stimulate economic activity, while gold surged as investors sought a safe haven amid market uncertainty triggered by the Fed’s aggressive monetary policy move. This rally in commodities reflects how sensitive markets are to major shifts in U.S. monetary policy.
Watchlist: GOLD 2550-2600 US Oil: 68 -70.55
 

The TEFS Analyst team wishes you a successful day!