Day Traders Diary

9/18/24

The major averages went on a wild ride after the Federal Reserve cut rates by 50 basis points, more than the initial 25 basis point cut projection. The Dow Jones Industrial Average finished down 103 points after rising more than 375 points after the Fed rate cut. The S&P 500 fell 16 points while the Nasdaq Composite fell 54 points.

The 10-year Treasury rose 6 basis points to 3.70%. The 2-year Treasury yield added more than a basis point to 3.60%. A quarter-point cut was widely expected until recent days when investors began pricing in a higher probability of a bigger half point reduction. Many are expecting further rate cuts later in the year.

Bank stocks hit their session highs after the Fed lowered rates by a half percentage point with the Bank ETF rising 2% before pulling back. The regional banking ETF jumped 3%. its best day since Aug. 23. The homebuilder ETF rose to a record high on the rate cut.

Bitcoin was modestly lower today as gold jumped to a record high before pulling back.

Today's pullback comes after a nice rally the last two weeks into the Fed rate cut decision.