Nifty 500 Hits Record Low
Stock Market Today, After, US Fed Cuts Rates Again- But Should You Celebrate Yet?
The US Federal Reserve just trimmed interest rates by 25 basis points, bringing them down to 3.75%–4.00%, the second cut this year! Sounds great, right? Well, not so fast.
Fed Chair Jerome Powell poured a bit of cold water on the excitement, saying another cut in December is “far from a foregone conclusion.” In simple terms, the Fed isn’t ready to promise more easy money just yet.
The central bank says it’ll now watch how the economy behaves before taking its next step. After Powell’s cautious comments, traders dialed back their hopes, the chance of another rate cut in December slipped to 68%.
So, should you cheer or chill? According to many, Maybe a bit of both. The Fed’s playing it safe, keeping markets guessing and investors on their toes!
The Nifty 50 formed a small-bodied candle with a minor upper shadow on Wednesday, indicating mild selling pressure around key resistance levels. The index continues to trade comfortably above its key moving averages.
According to Sudeep Shah, Head of Technical Research at SBI Securities:
On the indicator side, the RSI rose from 67.92 to 72.43 over three sessions, showing sustained buying momentum, while a rising ADX signals a strong underlying trend.
Here’s how the global markets reacted after the US Fed’s rate cut and Jerome Powell’s cautious remarks:
Wall Street Ends Mixed:
Sharp Intraday Reversal:
Powell’s Cautious Tone Hits Sentiment:
Asian Markets Mirror the Mood:
In short- the Fed’s move gave markets a short-lived boost, but Powell’s warning brought everyone back to reality!
Analysts feel that the recent 25 bps rate cut by the US Fed is not much of a deal, although it is welcome. The reduction was not unexpected and most of the optimism is already portrayed in the market. Nevertheless, the easy monetary policy in the US may inject more foreign currency into the emerging economies such as India because the American bonds will no longer be appealing at lower yields.
Analysts observe that the advantage of the lower costs of global borrowing could lead investors to take increased risks, but this is more of a liquidity enhancement than a trend change. Market support by rate cuts will not correct growth or earnings overnight, but will improve sentiment.
In general, it is easy to understand the message: the action on the part of the Fed can be helpful in ensuring that liquidity is pumping and that the market is optimistic; however, investors must remain discriminating. The days of easy money are past; performance and intelligent investing will become the key point.
(With Inputs)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
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