Just like a child who is not allowed to play video games 24 hours a day and throws a tantrum, stock traders have taken stocks down by 250-400 Dow points. The 1/4% rate cut was made as expected so all should be happy. They even got an end to quantitative tightening-kind of a double bonus.
Spoiled brats didn’t like it when Powell said this is not the first in a long series of rate cuts. Give them what they want, but don’t promise more of the same goodies down the road and they throw a tantrum.
Anyway we all know that by tomorrow traders will find a reason to “party on”.
The 10 year treasury is trading down at 2.02% and with the employment report coming Friday we will see if this yield falls below 2%–I believe it is destined to move back below 2% soon.