📊 Fed Cut Sparks Measured Reaction

Good Morning Investors,

The macro backdrop remained uneven. The Federal Reserve delivered a 25 basis point cut and confirmed plans to end quantitative tightening in December, but Chair Powell’s cautious tone signaled that additional cuts are not assured.

The 10 year Treasury yield’s move back above 4% underscores that rate sensitive equities continue to face valuation pressure. Tariff related inflation risks and limited government data availability add further uncertainty for smaller, margin constrained issuers.

Selective opportunities persist in semiconductor and AI linked ecosystems, yet the broader environment favors disciplined positioning as liquidity, policy, and inflation dynamics continue to shape the short term outlook.

Matthias Schneider
Editor at Analytica Investor