Stocks Rally Gathers Momentum as Fed Cut Sinks In: Markets Wrap

Published On Sep 19, 2024, 2:00 AM

The article discusses a recent stock rally driven by expectations following the Federal Reserve's decision to cut interest rates by half a percentage point. This move is seen as a gesture to support the U.S. economy, possibly aiming for a 'soft landing' amidst concerns about a potential recession. U.S. and Asian stock futures rose significantly as markets reacted positively to the news. The Fed's action has encouraged bets that the economy will avoid a downturn, with many analysts forecasting a strong performance for stocks in the short term. The Bank of England decided to maintain its rates, and other central banks in Asia followed suit with similar measures. As a result, gold prices increased, while oil prices remained stable amid mixed signals about U.S. demand and geopolitical tensions in the Middle East.