Overview
The Federal Reserve reduced interest rates for the third consecutive time, with Chairman Powell indicating that the inflation impact from tariffs is temporary, while expressing optimism about economic strengthening. This triggered a positive reaction in the market despite reduced expectations for further rate cuts.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
A Major News Story
Chairman Powell stated that the rate cut would support the labor market without triggering inflationary pressures. This move aligns with a hawkish easing strategy. The Federal Reserve maintains its outlook for one more rate cut in 2020. Powell mentioned that without tariffs, inflation may have been in the early 2 percent range. The market responded positively, with the S&P 500 index rising by 0.7%. Meanwhile, Oracle saw a significant drop after missing earnings expectations.
Economic Indicators for Tomorrow
| Time | Indicator |
|---|---|
| 22:30 | U.S. Initial Jobless Claims |
| 22:30 | U.S. September Trade Balance Revision |
| 22:30 | U.S. September Wholesale Inventories |
| 23:00 | U.S. Natural Gas Storage |
| TBD | U.S. 30-Year Treasury Bond Auction |
General Opinion
While the Fed's rate cut has positively impacted the market, attention should be paid to future economic indicators and Fed actions. Changes in Fed policy and economic data releases could serve as critical buy/sell signals for investors.
