The Federal Reserve's Interest Rate Cut Triggers a Chain Reaction in the Market
Latest data shows that the Federal Reserve is considering adjusting its monetary policy direction. On April 25, as decision-makers signaled a rate cut, the U.S. stock market continued its upward trend, while commodity prices generally rose. This policy shift reflects significant changes in the U.S. economic environment.
This policy adjustment is primarily based on two considerations: first, the labor market heat has somewhat diminished, with slower job growth; second, inflationary pressures have significantly eased, with price increases gradually retreating from the peak levels of 2022. After more than a year of tightening cycles, the current inflation rate is close to the target range.
The market reacted positively:
In the stock market: Major indices continued to climb. Interest rate cuts will alleviate corporate debt burdens, particularly benefiting capital-intensive technology sectors, which will help promote innovation investment and business expansion.
In the commodity market:
Gold prices broke through key price levels, as the low-interest-rate environment increased its investment attractiveness;
Oil prices rose in tandem, reflecting the market's optimistic outlook on the economy.
This series of market changes indicates that monetary policy adjustments are reshaping the investment logic of various assets.
As the market continues to change, we are closely monitoring it to seize new entry opportunities. Like + comment, let’s navigate the bull market together and grasp this major opportunity.
