🚨 Fed Rate Decision: Calm Today, Bigger Moves Ahead? 📊
The market is expecting the Fed to hold rates steady today, with Kalshi traders pricing in a 95% chance of a pause and just a 6% chance of a surprise 25 bps hike.
But the bigger story might be what comes next. 👀
UBS expects the Fed to deliver two additional rate hikes by mid-2027, suggesting the fight against inflation may not be over just yet.
Here’s where things get interesting: despite its hawkish rate outlook, UBS remains bullish on stocks, projecting the S&P 500 could reach 8,400 by June 2027.
The reasoning? Strong corporate earnings, resilient businesses, and AI-driven productivity gains could help companies grow even in a higher-rate environment. 🤖📈
What does this mean for NVIDIA and $NVDAB?
If AI demand continues to fuel growth and earnings, NVIDIA could remain in focus. However, higher interest rates could also pressure tech valuations and increase market volatility.
My takeaway: A Fed pause may bring short-term relief, but the real game is whether AI growth can outweigh the impact of tighter monetary policy.
👀 What’s your view? Can AI-driven growth push stocks higher even if the Fed keeps rates elevated?