What can go wrong for risk after a 50bps Fed cut? Goldman answers

Morgan Stanley Comments on FOMC Action

Morgan Stanley Comments on FOMC Action

The analyst comments "The press conference solidified our views that a string of 25bp cuts from here is the best forecast. The Fed still sees the economy as healthy and labor market as solid, but risks to inflation have come down while risks to the labor market have risen. To show their commitment to not falling behind the curve and confidence in inflation's progress, Powell asserted a large first move was warranted. Powell has stressed and proven with this rate cut that the FOMC is willing to move gradually or make bigger moves... More

ING Comments on FOMC Action

SPDR S&P 500 ETF Trust (NYSE: SPY)

The analyst comments "There was a sense in economist circles that the majority of Fed officials would be reluctant to take such bold action in an environment where the economy is growing at a 2.5-3% rate, equities are at an all-time high, inflation is above target and unemployment is low at just 4.2%. With no... More

TD Cowen Comments on FOMC Action

TD Cowen Comments on FOMC Action

The analyst comments "Federal Reserve Chair Jerome Powell held a press conference today at 2:30 PM ET following the FOMC meeting. We highlight his financial policy comments: Asked about Basel 3 Endgame, Powell said he supports the changes to the capital regime that Fed Vice Chair Michael Barr previewed last week. He emphasized that this is not the final word as the regulators will assess the comments before finalizing the rule in the first half of next year. He also said this is an interagency effort. Powell said there... More

Current CME FedWatch Shows 59% for 475-500bps, 41% for 500-525bps

Current CME FedWatch Shows 59% for 475-500bps, 41% for 500-525bps

Current CME FedWatch Shows 61% for 475-500bps, 39% for 500-525bps

Current FedWatch Shows 61% for 475-500bps, 39% for 500-525bps

When the Fed cuts, buy these groups of stocks

As the Federal Reserve is expected to cut rates on September 18, Evercore ISI analysts identified key stock groups that could outperform during the easing cycle.

According to their note, the High Buyback factor has been a consistent winner in all Fed cut cycles since 1990, regardless of whether the cuts are prompted by a soft or hard landing.

The analysts... More

What if the Fed goes 50? BofA weighs in

Bank of America analysts weighed in on the potential impact if the Federal Reserve opts for a 50bps rate cut, highlighting how it could lead to significant rate repricing.

According to BofA, "today's decision will be a surprise either way" as the market currently prices in roughly equal odds of a 25 or 50bps cut.

The analysts stress that the market's reaction will depend on two main... More

Landmark Fed decision in focus, futures edge higher - what's moving markets

Investing.com -- US stock futures tick higher ahead of an all-important Federal Reserve interest rate decision on Wednesday, with debate swirling around whether the central bank will choose to potentially cut borrowing costs by 25 basis points or a more aggressive 50 basis points. The independent directors on the board of gene testing group 23andMe quit following failed negotiations with Chief Executive Anne Wojcicki over her proposal to take the group private, sending shares sharply lower in extended hours trading.

The Federal Reserve is widely tipped to slash interest... More

Fed to cut rates by 25bps despite markets bets for 50bps, Barclays says

Investing.com -- Barclays strategists believe the Federal Reserve will cut interest rates by 25 basis points (bps) on Wednesday, despite market pricing heavily favoring a 50 bps reduction. 

Even after a stronger-than-expected retail sales report on Tuesday, market expectations for the September Fed meeting remained unchanged, with a 65-70% chance of a 50bp rate cut now priced in. 

This marks a sharp surge from just weeks ago when the probability of a 50bp cut was around 17%. Interestingly, this increase in market odds has occurred even though the last two major data releases... More

"Data is what matters" for stocks after expected Fed rate cut - Barclays

Investing.com -- Stocks could see some short-term volatility after the Federal Reserve rolls out an expected interest rate cut on Wednesday several interest rate cuts in the coming months, but the wider trajectory of equities will likely be more impacted by upcoming economic data, according to analysts at Barclays.

The Federal Reserve is anticipated to slash interest rates for the first time since March 2020 following the conclusion of its latest two-day meeting, but the scope of the reduction remains a source of considerable uncertainty for... More

Growth stocks have room to gain amid soft landing, UBS says

Investing.com -- An expected campaign of Federal Reserve interest rate cuts could help ease some downward pressure on growth, supporting a soft landing for the US economy, according to analysts at UBS.

The Federal Reserve is widely anticipated to slash interest rates for the first time since March 2020 following the conclusion of its latest two-day meeting on Wednesday, but the scope of the reduction remains a source of considerable uncertainty for investors.

According to CME Group's... More

Global S&P Futures mixed in premarket

Global S&P Futures mixed in premarket, Nikkei mixed, DAX mixed, WTI Crude oil recently at $70, natural gas mixed, gold at $2595

Equities close slightly lower, trade choppy after Fed rate cut

By Chuck Mikolajczak

NEW YORK (Reuters) -U.S. stocks closed with modest losses on Wednesday, well off their intraday highs, after the Federal Reserve cut interest rates by 50 basis points, the high side of estimates for its first cut in more than four years.

Trading was choppy. Prior to the Fed announcement, the S&P 500 oscillated between modest gains and losses. The benchmark index rose as much as 1% after the announcement before paring gains and finally closing lower. The Dow and S&P 500 hit intraday highs before weakening.

Citing a "greater confidence" that inflation was moving... More