Good morning traders,
Yesterday, we saw the Federal Reserve cut interest rates by a quarter-point, a move that was largely anticipated by the market. This marks the third rate cut of 2025, and the Fed has signaled that it is unlikely to raise rates in the near future. The market reacted positively to the news, with the Dow, S&P 500, and Nasdaq all closing higher. However, the celebration seems to be short-lived as we are seeing some weakness in the futures market this morning.
One of the main drags on the market today is Oracle, which reported disappointing earnings after the bell yesterday. The stock is down over 10% in pre-market trading, and this is putting pressure on the entire tech sector. This is a good reminder that even in a low-interest-rate environment, earnings still matter.
In the forex market, the US dollar is weakening across the board following the Fed’s decision. The EUR/USD has broken above the 1.17 level, and the GBP/USD is also showing strength, trading above 1.33. I’ll be watching these pairs closely today for potential trading opportunities.
Overall, the market is in a bit of a holding pattern as traders digest the Fed’s latest move and look ahead to the holiday season. We could see some choppy price action in the coming days, so it’s important to be selective with your trades and manage your risk carefully.
I’ll be back later with more updates. In the meantime, trade safe!
