Insights

The Fed cut rates for the second consecutive meeting, and although another cut this year remains uncertain, history suggests that easing policy amid strong markets often supports further gains.

Last week was marked by the re-opening of the U.S. government after a prolonged shutdown. However, despite a significant boost to the stock market at the beginning of the week, the positive momentum waned as the week progressed as investors were concerned about high valuation of AI stocks and uncertainty over Federal Reserve policy.

The multi-week bull run ended last week, halted by a notable selloff of tech stocks. The NASDAQ experienced a sharp correction, driven by concerns of overpricing and high valuations, particularly in the technology sector.