At-a-Glance
Today’s Top Highlights
Today was a well anticipated Fed meeting over the last few weeks as it has been priced in as the first interest rate cut of the year. The probabilities were accurate and traders saw a 25-basis point interest rate cut today, and the S&P and Nasdaq saw some back and forth price movement before finishing the day slightly lower near unchanged. The Russell saw a strong move to the upside as small cap equities typically outperform in a lowering interest rate environment.
Outside of the equities, Gold and Silver saw sharp moves to the downside of this decision, with Silver being down over 2% and Gold slipping near 0.75%. Both of these markets have been shooting to the upside over the last few weeks trading near or at all time highs, which could add to to volatility on the move lower today. The CME Fed Watch Tool is still pricing in 2 more 25-basis point interest rate cuts this year, with one at each meeting in October and December, and traders will be watching this figure as more data on employment and inflation are released before those meetings.
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