he Federal Reserve has officially cut interest rates by 50 basis points, with projections of more cuts in the coming year. While rate cuts are often seen as bullish for the stock market, today’s reaction was more muted than expected. In this blog post, we break down what happened, what this could mean for the future, and highlight key stocks to watch.
Market Reaction:
After the announcement, we saw a brief spike in the major indices, followed by a sharp pullback. While the market held its structure, we ended the day down by around 4%. This wasn’t unexpected given that we’ve had several consecutive days of upward momentum leading into today’s decision.
Key Stocks to Watch:
- SMTC: Great breakout setup. After testing the $45 mark several times, it’s close to breaking through resistance. Keep this one on your radar for a potential move.
- Reddit (Redd): IPO stocks have been on fire lately, and Reddit could be the next in line to break out.
- FSLR: Strong resistance at $240, but it’s setting up for a potential breakout. Keep an eye on this one for a quick move.
- APLT: A small-cap favorite in the chatroom, showing potential for another big move.
Conclusion:
While the Fed’s rate cut didn’t spark a massive rally, the market is still holding up well, and individual stocks are showing strong setups. Be cautious, but keep an eye on the charts as we could see more action in the coming days.
