How will the market digest todays rate cut

That was a wild ride...

Shot up by 300 right after announce only to walk it back and then end negative.

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Looks like it didnt like it towards the end of the session

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Looks like it was pretty well priced in for .5

Bigger question how will Sept finish and Oct go? Usually not good months for the markets. I was hording some cash waiting for the usual swoon but so far came only in the first few days of Sept.

Since it was expected it was a nothing burger.

I think market is trying to determine if we go soft landing or not.

Obviously there is economic weakness. Fed wouldn’t have done a rate cut if they didn’t see some headwinds

Market not going to like it in the long run. Fed moving too fast. Inflation still too hot.

Buy on the rumor sell on the news

Short term selling will rule but consider that a lot of money is tied up in interest bearing instruments that will eventually make its way into stocks, and you have to be bullish…

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Because it means the Fed is worried.

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For the purposes of this thread: does the market see that?

We'll see as we go through the rest of the week and into Monday. It wouldn't surprise me to see the market rebound by Monday's close if so many traders look at the .5 cut through the short-term lens of being positive for lending versus the lens of a warning of upcoming economic problems on the horizon.

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Market not going to like it in the long run. Fed moving too fast. Inflation still too hot.

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How is it too hot? Its been less than 2% the last 3 readings when you remove Car isnurance and rent

How does fed policy control either of those. So no its not hot

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Because it means the Fed is worried.

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LINK

Correct, they're worried about this^

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Link?

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I don’t have a link from 1929 or 1987, but suffice to say it is pretty well recognized that October was bad in those years. There are too many links to count from 2008, and it was worse than ‘29 and ‘87. Since 1928, the largest average decline in down months for the S&P 500 is a tie between May, September, and October at (4.7%) And, that is even though October comes behind September, which is historically the worst month in the S&P, so it doesn’t do well when the bar is already set lower than any other month for things to turnaround. October is not as consistently bad as September, but when it is bad, it is extremely bad.