1. Home
  2. /News
  3. /S&P 500 Ends 7 Day Winning Streak after 50 bps FED Rate Cut

S&P 500 Ends 7 Day Winning Streak after 50 bps FED Rate Cut

Skerdian Meta•Wednesday, September 18, 2024•1 min read

After the major Fed rate cut of 50 bps today, US equities finished the day lower, with S&P 500 making a new high and coming back down. Prior to the FOMC decision, both the Dow and S&P 500 had hit new record highs, but they closed in the red. The key issue during the decision was that markets were near record levels following a seven-day rally, making it a challenging scenario for the Fed to navigate.

S&P 500 and US stocks end lower after the FOMC

The central bank opted for a significant 50 basis point rate cut, but since stocks couldn’t maintain their upward momentum, it turned into a “sell the fact” situation. The S&P 500 jumped to a new record high, pushing above the resistance zone, but buyers couldn’t hold the gains after the FOMC policy decision and reversed back lower.

S&P 500 Chart Daily – The Resistance Still Holds

  • Fed Funds Rate: Lowered to 4.75-5.00% range from the previous 5.25-5.50%.
  • Vote: 11-1 in favor of the cut, with Bowman dissenting.
  • Quantitative Easing: No changes made, as expected.
  • Expectations: Economists widely expected a 25 bps cut, but Fed funds futures had priced a 59% chance of a 50 bps cut, which was realized.
  • Inflation: The Committee is more confident inflation is moving sustainably toward the 2% target, with risks to employment and inflation goals seen as balanced.
  • Economic Activity: Continues to expand at a solid pace.
  • Job Gains: Acknowledged that job gains have slowed (previously stated as “moderated”).
  • Inflation Status: Has made progress toward the 2% objective but remains somewhat elevated (slightly revised from the prior statement).

S&P 500 Live Chart

S&P500
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Avatar
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
img
S&P 500 Ends 7 Day Winning Streak after 50 bps FED Rate Cut
6 h ago
img
U.S Fed reduces interest rates by 50 basis points
11 h ago
img
USDJPY Below 142 Again After Weak Japan Data
20 h ago
Comments
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
Top
FX
Crypto
Commodities
Indices
Start Trading