Affected by the Fed's shift to monetary easing, on September 20th, the price of gold surpassed 2600 points, reaching a new high. At Thursday's close, the S&P 500 index reached 5700 points, the Dow Jones index reached 42000 points, both hitting historical highs. The Nasdaq index pumped 2.5%, approaching a new high of about 3.6%. BTC is about 15% away from the new high.

Former New York Fed Director Dudley said the Fed will cut rates by 50 and 25 basis points in November and December, respectively. Wall Street is betting that the Fed will achieve a soft landing, which stimulates a rebound in high-risk areas in the market. UBS's baseline expectation is that the S&P 500 index will reach 5900 points by the end of the year and rise to 6200 points by June 2025. Standard Chartered analysts predict that the currency market will continue to rebound due to favorable macroeconomic conditions. BlackRock believes that the key significance of the Fed's decision to cut rates by 50 basis points is that the Fed will continue to cut rates in the next two years.

The Fed aims for a soft landing for the economy, constantly giving the weak US economy a shot in the arm (cutting interest rates / rescuing it), and is concerned about the job market. According to the Fed's Interest Rate Dot Plot, the median Interest Rate is expected to be 3.5% by the end of 2025 (currently 4.75-5.25%). Under normal circumstances, if the Fed cuts interest rates, it is a high probability event that risk assets will enter a bull run, while a bear market (economic recession) is a low probability event. The Atlanta Fed expects US Q3 GDP to be 3%, up from the previous expectation of 2.6% (two consecutive quarters of negative growth is considered a recession).
In the short term, before the Interest Rate reaches 3.5%, it is expected that the Fed's interest rate cut will continue, and the market will enter a favorable environment.