• 50 basis points at the FOMC Meeting

Jerome Powell and the Federal Reserve is poised to cut rates by 50 basis points at the FOMC Meeting.

What will the impact be on the stock market that is trading at all time highs? Should traders and investors expect a major sell off or another major rally? In this video I provide my analysis on all the different scenarios that traders should consider.

A 50 basis point rate cut could have a variety of effects on the stock market, depending on how traders interpret the Fed’s move. On one hand, a rate cut generally stimulates economic growth by making borrowing cheaper, which can boost corporate profits and drive stock prices higher. This could lead to another leg up in the current rally, especially if investors see the move as a proactive step to support the economy. On the other hand, some may view the cut as a signal that the Federal Reserve is concerned about underlying economic weakness, which could trigger a sell-off if sentiment shifts toward caution. Traders should keep an eye on key indicators like market breadth and sector performance to gauge how different areas of the market respond to the news.”

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