3 ms·

It means the federal reserve will do a rate cut soon. Stock market goes down and then up.

• rwmj 1y ago
  Won't the stock market go only up, if interest rates are cut? (For the avoidance of doubt, I'm not saying this is either a good or bad thing)
  • zahlman 1y ago
    I think the claim is that it will go down because of the bad news, and that the rate cut will depend on that happening first.
    • rwmj 1y ago
      Fair point, thanks.
  • ravshan 1y ago
    Rate cuts are probably already priced in.
    • ramesh31 1y ago
      Heat death of the universe is priced in.
• algorithmmonkey 1y ago
  Rate cuts are priced in at about 100% for a 1/4 point. It might go up for a 1/2 point, but that may also signal fear which could have the opposite effect. I think it's hard to say at this point.
• lantry 1y ago
  - high unemployment means the fed will do a rate cut, so markets go up - low unemployment means the economy is booming, so markets go up hmmm... the more I learn about the stock market, the more I believe in the limits of human understanding
• IAmGraydon 1y ago
  The rate cut is already completely priced in. Also, almost every market crash has started with a rate cut. It's a sign of economic distress.