
The Fed has probably spoiled the Santa rally, and more... | MarketTalk: What’s up today? | Swissquote
Sometimes, the truth is hard to say—and even harder to hear. The Federal Reserve (Fed) announced another 25bp cut as widely expected and priced in, but hinted that there will be just about two rate cuts throughout next year.
The market reaction was very aggressive, of course. The US yields and the dollar jumped, the S&P500 sold off nearly 3%. The Fed probably spoiled this year’s Santa rally, as its hawkish shift could trigger a deeper correction across US equity markets.
In commodities, oil sold off and gold tipped a toe below the $2600 per ounce and below its 100-DMA....