The stock markets rose and then reflected immediately after Federal Reserve Reducing the rate of federal funds by a quarter of a point to 4 % from 4.25 % on Wednesday, in a step that was sent from the telegraph for weeks before the meeting. The new oath is in the governor of the Federal Reserve Stephen E. Miran A vote was voted against this measure, in favor of a sharp reduction of half a percentage point, and the federal reserve was revealed in its monetary policy to update. Miran was the only member to oppose.
Stock markets that were in The highest levelIn response to the decision to reduce prices by 25 basis points, but shortly after. S&P closed 0.1 %, Nasdak Closed. 33 %, and Dao Close the industrial average of Jones by 0.57 %. Russell 2000, which includes smaller stocks, increased by 0.26 %. Gold prices jump To $ 3,704 an ounce before returning to $ 3665.
in Options MarketAndrew Hesnger, founder and director of quantitative data, said there is a preliminary rise in a situation of status – extending in mode options that gives the investor the opportunity to sell shares at a specific price – which represents an increase in increased hedges as investors look forward to protecting themselves on the negative side. He pointed out that the reduction was expected, but investors were looking for it Signs About if they can expect or three other discounts this year and expectations for 2026.
“The real surprise is what is the opinion of the federal reserve on the current situation of the economy,” said Hegerger. luck. “They refer to some weakness in the future, which means that they are looking to make more discounts.”
He added that this is good news for all those who share technology and growth, which usually means a gathering, but the weaknesses in the economy are worried for investors, especially on the facade of jobs. Last month, the United States Add 22,000 new employment has been a huge decrease since July when 79,000 jobs were added to salary statements. Unemployment rose to 4.3 %, higher It has been since 2021.
According to NILADRI “Neel” Mukherje, the chief investment official in Tia “Putting more weight to soften the conditions of labor market is more than the risk of inflation related to the tariff in a 25 -bit reduction and dropping two other cuts this year,” he wrote.
“This was a reduction in risk management, as the Federal Reserve is trying to move towards a neutral from the position of restrictions, while increasing the risks to the labor market,” Mukherji said in a statement.
He said that the head of the Federal Reserve, Jerome Powell, at his press conference after the announcement, seemed less concerned about the possibility of high prices in light of the slowdown in the economy and the labor market.
“This policy, which has been created, is difficult for bonds, and the dwelling of the dollar and the neutral of stocks in the short term.”
Jake Schormeer, a wallet manager in Harbour Capital and a former member of the New York market reserves group, has noticed small stocks and a golden movement on logical logical gold in view of the policy framework. He said that the surprise on Wednesday was not the reduction, but the Federal Reserve Bank Point plot Show an average of three expected discounts instead of expecting the 2.5 market. This marginal shift shows a more meaningful change in political thinking among the committee members.
Shormeer said that Miran’s opposition was not surprising, but he was expected to be two additional opponents, which is confirmed by the marginal nature of discussions on politics and uncertainty between federal reserve officials about the pace of mitigation. He said that the Federal Reserve maintains flexibility in its outlook and that the data is in the summary of the Federal Reserve for Economic Expectations (SEP) are liquid assessments instead of fixed promises.
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