NEWS
Tomorrow's Finally Fed Day

The S&P 500 and Dow Jones Industrial Average briefly made new all-time highs today before reversing to the downside to close nearly flat. Defensive areas of the market are selling off after a major rate-cut-driven run, while tech managed to stay nearly flat. All eyes turn to the Fed decision, updated forecasts, and press conference for guidance on what’s next. 👀

Today's issue covers the market’s rate cut bet, infrastructure stocks nearing a breakout, and the day’s biggest partnership news. 📰

Here’s the S&P 500 heatmap. 7 of 11 sectors closed green, with energy (+1.35%) leading and healthcare (-1.03%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $SWVL, $OMEX, $GLMD, $SNOA, $SMSI 📉 $ME, $TMDIF, $NKGN, $NVVE, $SPRC*

*If you’re a business and want to access this data via our API, email us.

ECONOMY
Canada Beats Other Countries To The Punch ✂️

With most developed market central banks turning their focus from inflation to employment and economic growth, Canada is among the first to see its consumer price readings reach their 2% target. 👏

The consumer price index posted its smallest YoY increase since February 2021, while the core measure cooled to its lowest level in about 40 months.

Analysts expect this reading to set the central bank up for a 50 bp cut, as it looks to bring the ‘neutral’ interest rate to a level that neither restricts nor stimulates growth. 😐

Meanwhile, in the U.S., the bond market is pricing in a 63% chance of a 50 bp cut tomorrow, given the continued cooling of the labor market. However, expectations have been extremely volatile, and the consensus view is that the Fed will cut just 25 bps so that it doesn’t send a ‘warning message’ to markets about the economy.

As for the U.S. economy, manufacturers continue to slow down their factories, according to U.S. steelmakers. Nucor and Steel Dynamics joined their Chinese counterparts in warning of lower profits ahead, citing weaker demand and pricing for its core ‘flat-rolled sheet steel’ product. ⚠️

The U.S. stock market remains optimistic, as two of the four major indexes hit new all-time highs today. The consensus view remains that the Fed’s ‘soft landing’ is intact, regardless of whether they go 25 or 50 bp tomorrow. That’s why today’s Chart of the Day highlights strength in infrastructure stocks below. However, bears argue that a recession is just around the corner and that the anticipation of ‘cheaper money’ is the only thing buoying stocks.

As always, time (and Jerome Powell) will tell. 🤷

HAPPENING ON STOCKTWITS
The Fed’s First Cut…Live On Stocktwits 🧑‍💻

The Federal Reserve is set to announce its first rate cut of the current cycle. And what better place to listen in and discuss the decision in real time than on Stocktwits? 👀

Join us on the $SPY stream tomorrow at 2:00 pm ET and follow $SPY on your Stocktwits watchlist to be notified when the action starts. Plus, after the Fed’s official stream ends, we’ll livestream Camel Finance’s reaction live on the platform.

This is the event of the week (and month), so make sure you join us and the rest of the Stocktwits community tomorrow at 2 pm ET! 👍