The Fed cut interest rates by 50 basis points, triggering market volatility!
Breaking news: The Fed cut interest rates by 50 basis points. This decision instantly ignited the cryptocurrency market, which rose across the board!
However, in stark contrast, US stocks performed poorly and seemed to have failed to keep up with this positive pace.
The implied volatility of major maturities in the options market has dropped significantly, especially the ultra-short IV has dropped by more than 25%. This means that the expectations of big investors for short-term short selling have been dashed, and the market atmosphere has changed instantly.
Next, we must pay attention to the two important interest rate meetings on November 8 and December 19 this year. The market generally expects that the cumulative interest rate cut will reach 100 basis points.
Moreover, the next meeting will coincide with the US election, and market fluctuations may be very intense!