Quick Take
In response to Powell’s recent commentary, financial markets underwent significant shifts. The markets are bracing for a series of seven rate cuts in 2024, a move that would position Fed funds between 3.50 and 3.75. This anticipation set various indices in motion – the Dow Jones Industrial Average surpassed the 37,000 benchmark for the first time, while the S&P 500 nudged close to its record peak, up 1.4%, after crossing the 4,700 mark. Nasdaq futures also hit an all-time high. European equities such as the DAX and CAC 40 have also hit all-time highs.
Bitcoin’s value briefly passed the $43,000 threshold before falling back and is now retesting the level again as of press time. Meanwhile, the U.S. Dollar Index (DXY) slipped to 102.5, registering a 1% drop over five days. Perhaps most notably, U.S. yields experienced a sharp decline, with the 10-year yield dipping below 4%. These pivotal shifts underscore the reactive nature of financial markets to monetary policy cues and affirm their sensitivity to potential changes in the economic landscape.
The post Powell’s dovish remarks send Dow above 37k, Bitcoin over $43k as markets anticipate rate cuts appeared first on CryptoSlate.