1. Bitcoin surged 2.5% due to weak job data affecting Fed interest rate expectations. 2. S&P 500 rose 0.1%, reflecting investor confidence amid likely Fed cuts. 3. Traders anticipate a 99% chance of a quarter-point cut in October. 4. Lower borrowing costs push investors towards riskier assets like cryptocurrencies. 5. Crypto stocks, including Coinbase, also saw significant gains.
Historically, interest rate cuts boost equities like SPY as capital flows to riskier assets. This may parallel past scenarios like mid-2019 when rate cuts led to significant SPY gains.
The article indicates imminent monetary policy changes affecting macroeconomic conditions, which can significantly impact SPY. The shift in investor sentiment towards riskier assets increases the potential for SPY appreciation.
The impending Fed decision on October 29 is likely to influence SPY prices immediately. Short-term market movements are typically more responsive to monetary policy announcements.