Stocks Pass 5,700 Milestone Post-FOMC, Ahead of Pre-Election Final Stretch Array ( [cookie] => cf24b1-660c0b-843566-70bbc1-cd77c7 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 1 [max_usage_crypto] => 1 [lock] => 1 [message] => [error] => [active_member] => 1 [subscriber] => 0 [role] => fsi_macro [visitor_id] => 593718 [reason] => [method] => ) 1

"I have been a sentient being, a thinking animal, on this beautiful planet, and that in itself has been an enormous privilege and adventure.” ― Oliver Sacks

Good evening,

FOMC Day has come and gone, and the Federal Reserve has put an official end to one of the most aggressive hiking cycles in Fed history. Investors were nervously optimistic before the Federal Open Market Committee concluded its meeting on Wednesday, debating whether the Fed would decide on a cut of 25 bp or 50 bp. As implied by Fed Funds futures trading, there were supporters on both sides of the issue, but in the hours leading up to the rate announcement, there was a slight shift toward the larger cut. That turned out to be correct, with the FOMC opting to cut 50 bps, setting a target range of 4.75% - 5.00%. 

For Fundstrat Head of Research Tom Lee, the decision and Fed Chair Jerome Powell's post-meeting press conference were decidedly positive for markets. "Chair Powell mentioned 'recalibration' multiple times," he pointed out. "To me, this indicates that the Fed has shifted its focus to the other part of its dual mandate, keeping the job market strong. With inflation softening, it seems clear that the Fed wants to keep the economic expansion healthy."