What if Fed cuts rates by over 50 bps? How will the stock market react, should you buy or sell?

economictimes.indiatimes.com:

recession in the United States, and the Federal Reserve is trying their best to halt it for as long as possible. Reports suggest that they have gone to the extent of planning an interest rate cut of 50 basis points for stopping the impending recession in its tracks. However, there are multiple other market factors in play, which could bring in a recession or an economic downturn, and the upcoming US elections 2024 could also be one of them.

What could be the effects of a 50 bps rate cut?

A 50 bps rate cut could somehow ease the pressure off of US investors, but it may also bring in certain volatility factors into play in the US markets, suggest a few market experts. Some are suggesting that a 25 bps rate cut would suffice for now, and would not trouble the market scenario, amid the ongoing drama surrounding the US Presidential polls 2024, as well as the September troubles of a few renowned stocks, including the likes of Nvidia, Nasdaq 100, S&P 500 and more.

Should you buy or sell as an US investor amid this crisis market scenario?

A US investor should consider all market forces in play at this very moment, including the fact that September is not a very good month for most stocks, especially during any election season in the United States. Therefore, some may consider waiting out this volatile period and hold positions until things are on a optimistic trajectory. Meanwhile, others can consider buying certain stocks that ae dipping heavily this September, including S&P 500 and Nasdaq 100.

FAQs:

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