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Another 25bp Rate Cut! What's next for the market?
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Wall Street Today | S&P 500, Dow Break Records the Day Before Rate Decision

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Moomoo Recap US joined discussion · Sep 17 15:15
Wall Street Today | S&P 500, Dow Break Records the Day Before Rate Decision
The market cooled in the afternoon after the S&P 500 and Dow Jones Industrial Averages hit record trading highs Tuesday morning before falling back. Only a couple of trading hours remain before the most exciting FOMC monetary policy meetings for years.
Just past 4 pm ET the $S&P 500 Index (.SPX.US)$ was up 3 bps, the $Dow Jones Industrial Average (.DJI.US)$ fell 0.04%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.20%.
Wall Street Today | S&P 500, Dow Break Records the Day Before Rate Decision
MACRO
In macro, investors are looking toward the Wednesday FOMC Monetary Policy meeting, where the Treasury Futures market expects rate cuts, according to the CME FedWatch tool. On Monday, Former President of the New York Federal Reserve Bill Dudley wrote in Bloomberg Opinion that the FED should go for larger cuts on Wednesday.
"As I noted last Friday at a Bretton Woods Committee conference in Singapore, the logic supporting a 50-basis-point cut is compelling," he wrote. He said inflation is lower, and jobs are still secure, "Yet short-term interest rates remain far above neutral. This disparity needs to be corrected as quickly as possible."
Wall Street Today | S&P 500, Dow Break Records the Day Before Rate Decision
Tuesday, U.S. August retail numbers came out from the Census Beuro and showed the total value of retail sales increased 0.1% month over month, and 'core' sales excluding food services, auto, building materials, and gasoline. Mark Strieber from FHN Financial said some categories fell from price declines- but the figures indicate household demand is still resilient.
SECTORS
Oil futures rose Tuesday after news reports said pagers carried by thousands of Hezbollah operatives in Lebanon exploded around the same time, raising fears of a broader Middle East conflict that could threaten crude flows from the region. West Texas Intermediate crude for October delivery rose $1.48, or 2.1%, to $71.57 a barrel on the New York Mercantile Exchange. November Brent crude, the global benchmark, was up $1.13, or 1.6%, at $73.88 a barrel on ICE Futures Europe. $Crude Oil Futures(JAN5) (CLmain.US)$ climbed 1.56% to above $70/barrel for the first time since the prices dropped at the beginning of the month.
The blasts left more than 2,700 injured and eight dead, according to the Wall Street Journal.
MOOVERS
$Hewlett Packard Enterprise (HPE.US)$ rose 5%, the highest on the S&P 500 at one point after Bank of America Anlysts upgraded shares to a Buy, mentioning cost cuts and the acquisition of $Juniper Networks (JNPR.US)$. HPE said it would by the networking company for $14 in January and announced the sale of 27M Series C shares to finance the deal with $1.32B cash last week. Jim Cramer also mentioned HPE as a buy Monday night on CNBC.
$Virgin Galactic (SPCE.US)$ fell 7% Tuesday after Morgan Stanley analysts slashed their price target from $35 to $5 in a note that said the firm's last near space flight was in June. A Seeking Alpha analyst Jason Ditz issued a sell rating in August, saying there is no indication management will improve the firm's business model.
$Intel (INTC.US)$ climbed 7% intraday Tuesday, the highest on the Dow after CEO Pat Gelsinger said Monday the firm bagged a multi-year, multi-billion-dollar U.S. chipmaking deal with $Amazon (AMZN.US)$ alongisde the award of a $3 billion CHIPS and Science Act grant. The grant is supported by the Department of Defence for protecting domestic production. Intel also proposed selling its semiconductor foundry business for cash.
$Amazon (AMZN.US)$ also climbed on Tuesday in part after the firm announced that employees would return to the office five days a week. Intel is also exploring the foundry business spinoff into a publicly traded company, CNBC cited a familiar source.
JPMorgan Chase is talking with Apple about taking over the tech giant's credit card program. Discussions started earlier this year and have advanced in recent weeks, but a deal could still be months away, according to people familiar with the matter. It isn't guaranteed a deal will come together, given key details, including the price, are still to be negotiated.
Chinese electric vehicle stocks $XPeng (XPEV.US)$ , $Li Auto (LI.US)$ , $ZEEKR (ZK.US)$ , and $NIO Inc (NIO.US)$ are trading higher Tuesday after a Monday report indicated that the People's Bank of China (PBOC) looks to slash the bank reserve requirement ratio (RRR) by 50 bps, followed by another half-point cut in the first half of 2025. Li climbed 10%.
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