Interest Rate Cuts and Market Reaction

Jerome Powell's recent comments suggested that September would signal the start of an interest rate cutting cycle, which provided reassurance to the stock market. However, many analysts noted that Powell did not introduce any new information, reiterating previous expectations. Despite this confirmation, bond markets remained relatively stable, indicating that investors had already anticipated this move. In contrast, the stock market, driven by momentum and optimism, appeared to interpret Powell's remarks as an invitation to chase gains, potentially aiming towards all-time highs.