Traders Pile Into Stocks And Treasury ETFs Post-Fed Meeting, Anticipate First Rate Cut In June 2024
Portfolio Pulse from Piero Cingari
Following the Federal Open Market Committee (FOMC) meeting, stocks and bonds rallied in New York as interest rates were kept steady at 5.25%-5.5%. The SPDR S&P 500 ETF Trust (SPY), Invesco QQQ Trust (QQQ), and iShares 20+ Year Treasury Bond ETF (TLT) all experienced significant gains. The futures market now implies a high probability of steady interest rates in December, with the first rate cut expected in June 2024. However, uncertainty persists with some investors cautioning against prematurely declaring an end to the selloff in the U.S. bond market.
November 02, 2023 | 5:09 pm
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POSITIVE IMPACT
The Invesco QQQ Trust (QQQ) gained 1.5% and is headed for its fifth consecutive day of gains, marking its strongest winning streak since mid-August.
The decision to keep interest rates steady has led to a rally in the stock market, positively impacting QQQ. The ETF is likely to continue its upward trend in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) surged by 1.5% following the FOMC meeting, marking its fourth consecutive session of gains.
The decision to keep interest rates steady has led to a rally in the stock market, positively impacting SPY. The ETF is likely to continue its upward trend in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) rallied even further, posting a 2.2% gain as Treasury yields dropped across all maturities.
The decision to keep interest rates steady has led to a drop in Treasury yields, positively impacting TLT. The ETF is likely to continue its upward trend in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100