Sell the Rate Cut News?
Wall Street got its cut.
But the talking heads have already pivoted to speculating on the Fed’s next move, with CNBC noting that the central bank “disappointed markets when it did not tip its hand on future rate cuts.”
Jerome Powell opened his mouth just a few minutes later.
That’s when the selling started…
Powell proceeded to muddy the waters during the ensuing press conference, claiming yesterday’s rate cut is not, in fact, the beginning of a long series of cuts — yet he also did not explicitly state that it would be the only one.
Everyone expected stocks to rally after the rate cut became official. Of course, the market doesn’t give a damn about investor expectations. Stocks sputtered on the news, then started tanking as soon as Powell’s confusing press conference began.
By the end of the day, the Dow finished 300 points in the red. The S&P 500 and Nasdaq dropped more than 1%. Gold retreated and finished the day in the red, even though common sense says precious metals should strengthen if rates drop.
As if yesterday’s action wasn’t counterintuitive enough, we can pin gold’s drop to a strong breakout in the U.S. Dollar, which just streaked to new 2019 highs.
“There are a number of reasons why the Fed (and the White House) don’t want to see a stronger dollar,” John Murphy explains on his Stockcharts.com blog. “One of them is that a stronger greenback lowers inflation in the states. One of the reasons the Fed gave for lowering its rate today is to boost inflation. A rising dollar makes that job a lot harder.”
Bottom line: We’ve enjoyed a very orderly rally this summer. Anyone who was looking for an excuse to take some profits yesterday got exactly what they wanted.
If you’re sick of all this talk about the Fed, you should consider taking out your frustrations at New York’s new trendy gym…
GRIT BXNG is a CBD gym in New York that serves gazpacho, low calorie beer, and accepts Bitcoin.
No, I’m not making this up — and the gym’s theme wasn’t concocted from a random word generator. The GRIT BXNG trend mashup is, unfortunately, a real place owned by none other than Pitbull and Tony Robbins, The Cut reports.
The gym/bar/monument to all our sins will open this month in Union Square. At that point, I’m sure the countdown to the permanent downfall of the global economy will begin.
Menu items at the gym’s café even include something called “Dr. Mushroom’s Gazpacho with CBD.” Even better, you can listen to the lyrical stylings of Pitbull and DJ Khaled via giant television screens while you work out in the Swarovski crystal encrusted hell-scape of modernity. Or if the mood strikes you, the same screens will blast Tony Robbins inspirational videos directly into your skull.
Something tells me gym members will need to take massive doses of CBD to endure this nightmare…
Finally, let’s check in on Google’s latest misguided attempt to save the planet.
Celebrities from all over the world were apparently invited to Italy by Google to talk climate change. Among those on the list are Leonardo DiCaprio, Katy Perry, Barack Obama, and Harry Styles, according to Page Six.
What the heck is a former One Direction member going to do about climate change?
I have no idea. But celebrities all know better than us regular folks, so I suppose it’s important they come together on Google’s dime to try to stop global warming.
In a twist of irony, all the attendees flew their private jets or took massive yachts to the event, spewing untold amounts of pollutants into the air.
At last count, Page Six notes 114 jets are slated to arrive along with countless luxury yachts and SUVs. According to some rough math from the Post, the first-class flights from Los Angeles to Palermo, Italy would spew as much as 784,000 kilograms of CO2 into the air.
Perhaps the rich and influential should have held the event over YouTube Live instead…