The article discusses the recent decision by the Federal Reserve to cut interest rates by 25 basis points and the market's reaction to this decision. It explains that the market's expectations leading up to the decision were based on the Fed's forward guidance and the positioning of market players. The article also highlights that the market had expected more rate cuts in the future, but the Fed surprised everyone by forecasting only two cuts in 2025 instead of the anticipated three. The article attributes the market's strong reaction to a combination of factors, including low volatility, expectations of a Santa rally, and a large options expiry this week. Overall, the article emphasizes that market moves are influenced by a variety of factors and can be quite aggressive, as seen in this case.



Other News from Today