💥Last night's market surged, and the core reason is that old Powell finally opened up.
Powell stated in his speech that, as economic risks continue to 'change', the Federal Reserve has more reasons to cut interest rates. This statement essentially aligns with the dovish side, implying that the September meeting may support a 25 basis point rate cut.
The data immediately reflected this: the probability of a 25 basis point rate cut in September soared from 75% before the speech to 85.2%, while the probability of maintaining the rate unchanged is only 14.8%.
Therefore, yesterday's rally is essentially the market preemptively realizing the positive news. In the short term, before the official rate cut, there will still be a wave of 'speculative trading'; but once the rate cut is implemented and the positive news is realized, the market will likely correct again, and then enter the next round of speculation on 'future rate cuts'.
In simple terms: a rate cut is a great benefit, but the process is the opportunity!
I am Lao Jiu, follow me. Let me help you seize every major market opportunity in the bull market!!!
