Dear friends!

On April 25, when the Federal Reserve signaled a rate cut, the financial markets went straight "crazy"!

The three major U.S. stock indices have been rising for three consecutive days, and commodities like gold and crude oil have also seen price increases, all because the Federal Reserve's monetary policy has changed!

Why the sudden rate cut? There are mainly two reasons: on one hand, the U.S. job market has weakened, and the growth rate has slowed down.

On the other hand, inflationary pressure has significantly decreased. Previously, the Federal Reserve maintained high interest rates for 14 consecutive months to curb inflation, and now the inflation rate has dropped from a high of 9.1% in September 2022

to 2.5%, almost reaching the 2% policy target!

Once the rate cut was implemented, the market reacted extremely lively:

For businesses, the cost of borrowing has decreased, and profit expectations have soared.

Especially for tech stocks and companies looking to expand, they are simply the "chosen ones"!

Gold has become more attractive due to the weakening dollar,

with prices breaking through 3300; crude oil prices have also risen nearly 1% because of expectations of increased demand.

Ultimately, a rate cut stimulates the economy by lowering the cost of capital,

and the overall optimistic sentiment in the market has been ignited all at once!