Daily Summary: strong Fed cut fuels bullish sentiment on Wall Street 📈

Stock markets continue to rise in euphoria after yesterday's dovish Fed decision. U.S. index futures gain up to 3.00%, with the US100 up by 4.00%. It's important to note the contract rollover that took place overnight.

However, even without accounting for the rollover, the SP500 index still gains nearly 2.00%, reaching new all-time highs at 5720 points, while the Nasdaq 100 index is currently testing resistance at 20,000 points, with an impressive gain of 2.90%.

The dollar index remained relatively unchanged throughout most of the day. However, towards the end of the day, selling pressure prevailed, leading the USDIDX to lose 0.20%, closing at 100.4000 points.

Citi Bank expects aggressive monetary easing to continue in upcoming meetings and does not rule out another 50 basis point rate cut.

JPMorgan predicts another 50 basis point rate cut in November, which could be adjusted based on weaker labor market data from upcoming employment reports.

Goldman Sachs expects a longer series of 25 basis point cuts from November through June 2025, with the decision between a 25 or 50 basis point cut in November depending on further employment reports.

The market currently prices in a roughly 30% chance of a 50 basis point cut during the November meeting.

U.S. existing home sales came in at 3.86 million (expected: 3.95 million; previous: 3.96 million). Although the data is weak, future rate cuts are expected to positively stimulate the market.

Initial jobless claims in the U.S. last week were just 219,000, down from the previous reading of 230,000. Low claims underscore the Fed's rhetoric about a strong economy, reinforcing investor confidence in buying riskier assets.

Fitch Ratings notes that while Federal Reserve rate cuts alleviate some pressure on the U.S. housing market, mortgage rates are unlikely to fall below 5.0% before 2027.

Gas inventories rose slightly above expectations (+58 bcf; expected: 54 bcf; previous: 40 bcf), although the growth rate is below the 5-year average. There is a strong possibility that inventories will fall below the 5-year average before the heating season begins.

As expected, the Bank of England kept interest rates unchanged. The vote to maintain rates at 5% was 8-1, with only Swati Dhingra voting for a 25 basis point cut.

Gold hits new all-time highs, gaining 1.20% today. Prices are currently consolidating just below $2600 per ounce.

Bitcoin gains 5.50% to $63,600, extending yesterday's dynamic growth. Positive sentiment is returning to the cryptocurrency market, supported by hopes for a soft landing of the U.S. economy and interest rate cuts.