The last time Fed Cut 50bps was September 18th as well… in 2007
Champagne and Cookies…
September 18th, 2007: "We're having champagne and cookies," Skrainka said. "This is not a magical elixir that solves our subprime problems overnight, but it is a big step in the right direction to keep the economy growing. The Fed is sending a strong message that it won't get behind the curve," he added.
Initial reaction was good. But then…
Zooming Out on Stocks versus Gold after the last 50bps cut…
At 4pm after the Fed announcement and GLD close and after the market had washed out on profittaking a significant chunk of Gold $3000 calls traded OTC. We put it in context.
US equities were mixed on Friday after the Fed cut near-term rates by 50 bps on Wednesday. Large caps bested small caps: S&P 500 (-0.19%) vs. Russell 2000 (-1.10%). MSCI Emerging Markets (EEM) and MSCI EAFE (EFA) fell 0.21% and 0.99% respectively.
Market News: Manufacturing manifests
"Two chip-making giants have discussed building huge factory complexes in the United Arab Emirates that could transform the industry in the coming years and become a cornerstone for artificial-intelligence investments in the Middle East. WSJ
"Apollo Global Management has offered to make a multibillion-dollar investment in Intel... in a move that would be a vote of confidence in the chipmaker’s turnaround strategy. Bloomberg
"Chipmaker Qualcomm approached its struggling rival Intel about a potential takeover in recent days..: FT
"Boeing machinists on the picket lines said they have saved money for the strike and plan to pick up temporary jobs to make ends meet. CNBC
"US banks made a $1tn windfall from the Federal Reserve’s two-and-a-half-year era of high interest rates: FT
"Israel and Hezbollah accelerated their cross-border attacks overnight into Sunday with their leaders exchanging saber-rattling threats in a rapidly deteriorating situation that has the adversaries as close to full-out war as they have been in their nearly yearlong conflict." Source: WSJ
US House Republicans unveil three-month stopgap bill to avert a government shutdown which would fund the government through December 20th and omits changes to voter registration that Trump had called for.
Harris accepted a CNN debate invitation and challenged former President Trump to a debate although Trump rejected the offer and said it was 'too late' for another debate.
Data on Deck: Refocus on Inflation Risks
Now that the cuts are in and the recession debate will become academic as stocks have their restored liquidity, focus will again return to inflation risks
MONDAY, SEPT. 23 PMI Sept
TUESDAY, SEPT. 24 Case-Shiller home price index (20 cities)
