From a reader (not Boomtime, not MarinaPrime, not me, not any of the other bulls…), verbatim:
“Fed Cut the Rate! Seatbelts, please…
* FED CUTS FEDERAL FUNDS RATE HALF POINT TO 4.75%
* FED CUTS DISCOUNT RATE HALF POINT TO 5.25%
* Yield curve steepened dramatically as the 2Y went from 4.13% to less than 4.00%, 10Y yield moved down to 4.46 but has since rebounded a bit
* Future moves will depend on data & economic conditions
* Gold reached a 27 year high as traders hedge against weaker $
* Most beaten-up names will most likely benefit the most (CFC, WM, WFC etc), but their early rally is starting to retreat
* Moves in indices and other asset classes:
BEFORE IMMEDIATELY AFTER
INDU 13478 +73 13608 +216
SPX 1485 +9 1504 +28
CCMP 2590 +9 2619 +91
10Y 4.50% 4.458%
GOLD $717 $722
CRUDE $81.66 $81.03
GBP 1.9999 2.0105
EUR 1.3886 1.3940
JPY 115.8300 115.52”