Bank of America strategist: Market reaction to the Fed's 50 basis point rate cut seems to follow a "soft rate cut" or "panic rate cut" script

According to TechFlow, on September 22, according to Jinshi Data, Bank of America strategist Hartnett pointed out that the market's reaction to the Fed's 50 basis point rate cut seems to follow the "soft rate cut" or "panic rate cut" script. The U.S. stock and credit markets expect the Fed to cut interest rates by 250 basis points by the end of 2025, and the earnings of S&P 500 index components will increase by 18%. Hartnett warned that "bubble risks" are returning, saying that investors are forced to chase the rise. He explained that Wall Street prefers "panic rate cuts", and the Fed's 50 basis point rate cut can reduce the actual interest rate and prevent small businesses from laying off employees.