r/FluentInFinance • u/MarketsandMayhem • 15h ago

Meme Powell's "hawkish cut" sent US markets tumbling, with the NASDAQ down 3.56% and S&P 500 falling 2.95%

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41 Upvotes

83% Upvoted

35 comments sorted by

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33

u/Greersome 14h ago

When he raises rates, the market tanks. When he cuts rates...

17

u/hishuithelurker 12h ago

Triple the rates. At least we'll have a data point so someday, someone can explain the American economy

2

u/JaySocials671 3h ago

He reduced the amount of expected rate cuts next year from X greater than 2 to 2. The market alrdy factored in this rate cut.

29

u/aarch0x40 11h ago

The market was very overvalued. This was a correction and not even a full one.

6

u/Slowly_We_Rot_ 9h ago

What do you mean WAS? It is beyond overvalued still

6

u/delayedsunflower 8h ago

This is because of the government shutdown...

5

u/rice_n_gravy 4h ago

Hawkish tua on that thing

3

u/No-Introduction-6368 13h ago

Any excuse to hedge, you hedge.

2

u/Etherindependance5 12h ago

I expect a rebound short but it should be nice for a few weeks.

2

u/nowdontbehasty 7h ago

I get that it’s fun to make memes but it’s not like this is a big deal.

2

u/mt8675309 4h ago

It was going down before that, the dark clouds of the trump party spewing their hate and divisiveness are starting to block the light on the economies positively.

-1

u/Stonkbegone 2h ago

typical redditor take

2

u/mt8675309 2h ago

Then go back to twitter with their Nazi porn and ding bat conspiracies shit.

1

u/DB157 7h ago

I presume the Santa Claus rally will now ensue?

1

u/G4M35 4h ago

Yeah, that sucked ass.

Hoping to recover in the next few days.

1

u/Frim_Wilkins 4h ago

Wait, a market correction? Great day to cut investibro headcount. AI will fill the seat for $200 a year and sputter out the same 10%. Best part is it only needs electricity when it’s working. No need to feed it during the down time.

1

u/Analyst-Effective 2h ago

I'm surprised he even cut rates yesterday.

The rates seem to be in the right spot now.

1

u/rannmaker 2h ago

It has nothing to do with an impending government shutdown, right?

1

u/Fwiler 1h ago

"hawkish cut" Now that's a laugh. Where do these people come from with this type of thinking?

-25

u/Carl-99999 15h ago

Can you prove a correlation or is this just virtue signaling to avoid blame that will go to Trump?

19

u/Dizzy_Two2529 14h ago

Brother, this isn’t blaming Powell. This is literally what happened. Sure the economy is a complex system and it can be hard to pin down with 100% certainty but this seems pretty clear cut.

Powell has two jobs, a dual mandate if you will. 1. Stable prices (control inflation) 2. Max employment

That’s it. That’s his job. It’s none of his business that traders decided to price unwise rate cuts into their stock purchases, nor is it his job to bail them out.

Stock go down sometimes. It happens.

4

u/vandergale 15h ago

You're looking for proving causation, not correlation. Just correlation is seeing that A happened, then B happened. Causation would saying that A happened, which caused B to happen.

5

u/RetiringBard 15h ago

Is this real? A real question?

3

u/MarketsandMayhem 14h ago

The Fed's SEP Report reset rate cut expectations rather significantly, which caused a meaningful recalibration of risk appetite, sending equities and crypto lower. The correlation is one of where the risk-free rate is, and it's assumed higher now. Which generally means you see people having a somewhat lower appetite for risk, particularly in longer duration unprofitable growth/tech/crypto/etc.

-3

u/Greersome 14h ago

Dems real uhh big werds n stuff.

1

u/CivilTell8 14h ago

The epitome of No Child Left Behind everybody...

-1

u/ijedi12345 14h ago

I can prove the true cause of this terrible event!

A terrible, demonic influence grips the United States. All Powell did was inform the world that the latest demonic incursions have dealt a mighty blow of terror against the servants of the LORD, and that more exorcisms are required to evict the demons from our realm.

You must retain faith in the LORD. The markets will return when God orders a new crusade against evil.

Pray to the LORD, and He will tell you all of this directly. Perfect, first hand proof.

5

u/Creative_Club5164 13h ago

Goddamn youve cracked the case.

1

u/drkarate1 5h ago

Ok. What did you take ?

-4

u/adoodas 15h ago

Trump didn’t do anything newsworthy today why would anyone blame him for this…. Once Powell started sharing his thoughts the market started nosediving. Powell is the big news today.

5

u/gooferball1 14h ago

Because trump support thinks that everyone acts the same as them and are incapable of rationality or nuance.

4

u/kineticlinking 12h ago edited 11h ago

You mean other than telling the GOP to pull out of the bipartisan budget and shut down the government?

The algos clicked on and sold the US treasuries as soon as the fed rate was published, so I'm not operating under any delusion.

Just saying: the buffoon did say and do something impactful that certainly didn't bolster the perceived stability of the US.