FED OUTCOME
The Fed cut interest rates by 25 basis points (0.25%) which is exactly what 97% of market participants wanted.
But, the Fed revised their 2025 outlook from 3 rate cuts to 2 rate cuts, a total of 50 bps. In reaction, the US Equities (S&P 500) posted its largest post-Fed drop since March 2020, erasing $1.8 TRILLION of market cap in a single day. This led to what appears to have been the biggest panic sell in the market since the Yen carry trade collapsed.
The Fed cut interest rates by 25 basis points (0.25%) which is exactly what 97% of market participants wanted.
But, the Fed revised their 2025 outlook from 3 rate cuts to 2 rate cuts, a total of 50 bps. In reaction, the US Equities (S&P 500) posted its largest post-Fed drop since March 2020, erasing $1.8 TRILLION of market cap in a single day. This led to what appears to have been the biggest panic sell in the market since the Yen carry trade collapsed.