Tonight short selling is prohibited.
Interest rates will be cut at 2 AM tomorrow, and Powell will speak at 2:30 AM.
A rate cut is definitely a good thing. Although the transmission of money still has a process, the financial market is very sensitive.
A rate cut is either a preventive measure or an emergency response to a crisis. Although employment has declined, overall it looks fine. My personal judgment is that this is a preventive rate cut. The kind in March 2020 was an emergency rate cut, where rates were cut by 150 BP in two weeks, and the market still kept crashing.
Back to the market situation, this time a 25 BP cut is a good thing, in line with market expectations. It may lead to a short-term pullback after the good news is realized, or it may surge after the announcement and then adjust, but in the long run, it's positive. Not cutting or cutting by 50 BP would be bearish; cutting too much could lead to recession expectations.
The ideal scenario is to cut rates 2-3 times by 25 BP this year. If we find that rate cuts start to accelerate, we have to be careful.
Starting from 2 AM tomorrow, there will be relatively large fluctuations in the market, especially with Powell's speech. Every word may lead to volatility, with a high probability that the price won't change but orders might disappear. It's best not to engage in short-term trading tonight, just pure gambling on size.
Interest rates will be cut at 2 AM tomorrow, and Powell will speak at 2:30 AM.
A rate cut is definitely a good thing. Although the transmission of money still has a process, the financial market is very sensitive.
A rate cut is either a preventive measure or an emergency response to a crisis. Although employment has declined, overall it looks fine. My personal judgment is that this is a preventive rate cut. The kind in March 2020 was an emergency rate cut, where rates were cut by 150 BP in two weeks, and the market still kept crashing.
Back to the market situation, this time a 25 BP cut is a good thing, in line with market expectations. It may lead to a short-term pullback after the good news is realized, or it may surge after the announcement and then adjust, but in the long run, it's positive. Not cutting or cutting by 50 BP would be bearish; cutting too much could lead to recession expectations.
The ideal scenario is to cut rates 2-3 times by 25 BP this year. If we find that rate cuts start to accelerate, we have to be careful.
Starting from 2 AM tomorrow, there will be relatively large fluctuations in the market, especially with Powell's speech. Every word may lead to volatility, with a high probability that the price won't change but orders might disappear. It's best not to engage in short-term trading tonight, just pure gambling on size.
