At today’s FOMC meeting, the Fed cut rates by 0.25 percentage points, in line with broad market expectations. The move aims to address a slowing job market and inflation that remains high under Trump’s tariff pressure, though not worsening.
There was some division inside the Fed: newly appointed governor and Trump advisor Stephen Miran called for a 0.5 percentage point cut, but his view did not gain majority support.
Interestingly, the Fed’s dot plot shows officials still plan two more cuts this year. But since this view only has a slim majority, markets have little confidence in more easing ahead.
Market Reaction
Stocks showed little response:
• The S&P 500 (SPX) briefly rose but then fell back, closing down 0.12%.
• The Nasdaq closed down 0.2%.
This shows the market had already priced in the quarter-point cut. With no stronger action (such as a 0.5% cut) or clearer easing signal, there was no fresh push higher.
Technical View
Today’s low came near QQQ 584.5, now a key short-term pivot. Holding above 584.5 could lead to a move toward 595.5–600.8. In this case, traders who are over-hedged may face pressure as short positions get squeezed. Only a break below 584.5 would open downside space, with a two-week adjustment target of 580–575. But this requires first breaking the pivot, otherwise bears remain weak.
Summary
The rate cut was expected, but with no extra “surprise,” the market reaction stayed flat.
Traders should watch QQQ 584.5 closely. Bears lack control, and those with heavy hedges may be on the defensive.
More Information/Reports/Video/Analysis please contact us—info@the-currency-store.com. We offer fully customised content services tailored to you needs.
Add comment
Comments