Jerome Powell Finally Concedes 'Rate Cut Could Be On The Table' In September: Stocks, Gold Rise, Dollar Falls
Portfolio Pulse from Piero Cingari
Federal Reserve Chair Jerome Powell indicated that a rate cut could be on the table for the September meeting if inflation and the labor market perform as expected. The Fed held the interest rate steady at 5.25-5.5% in July. Powell's comments led to a rise in stocks and gold, while the dollar fell.
July 31, 2024 | 7:48 pm
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NEGATIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) dropped 0.4% following Powell's comments about a potential rate cut in September.
Powell's indication of a potential rate cut led to a decrease in the U.S. dollar index, directly impacting UUP.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Invesco QQQ Trust (QQQ) rose 2.8% following Powell's comments, as tech stocks surged on the news of a potential rate cut.
Tech stocks, tracked by QQQ, rose significantly due to market optimism about a potential rate cut, which is generally favorable for growth stocks.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 90