So, the Fed decreased interest rates by 0.5% to 4.75-5%.
Someone not experienced would assume that this would lead to a decrease in money market funds yields, treasury yields, and bond fund yields. So, investing in fixed-income assets will provide less return and people may be more inclined to buy stocks.
However, all major equities (total US market, S&P 500, Nasdaq 100, total international, US small-cap value) went down after the meeting.
What is the reason for this downward move when you would expect people to buy more stocks in this situation? I would love to hear your thoughts as a similar situation will likely happen again sometime. I understand that it is only 2 hour (LOL) trend and may completely revert tomorrow etc but it is still interesting.
Someone not experienced would assume that this would lead to a decrease in money market funds yields, treasury yields, and bond fund yields. So, investing in fixed-income assets will provide less return and people may be more inclined to buy stocks.
However, all major equities (total US market, S&P 500, Nasdaq 100, total international, US small-cap value) went down after the meeting.
What is the reason for this downward move when you would expect people to buy more stocks in this situation? I would love to hear your thoughts as a similar situation will likely happen again sometime. I understand that it is only 2 hour (LOL) trend and may completely revert tomorrow etc but it is still interesting.
Statistics: Posted by madmax71 — Wed Sep 18, 2024 3:11 pm — Replies 35 — Views 2173