Summary
As expected, the FOMC cut the fed funds rate by 25 basis points (bps) to a target range of 3.75%-4.0%. There was a high probability (+ 90%) that another 25-bps cut would happen on December 10, but that has declined to 65% according to the CME FedWatch Tool. The FOMC cited slower job growth and rising downside risks to employment as reasons for the latest cut. The stock market yawned while Treasury yields across the curve popped eight to ten bps. The U.S. Dollar Index rose and is again closing in on important chart resistance at $100. Wednesday was another very narrow day for the stock market, as NYSE decliners led advancers by over 1000 issues. That equates to winners/total NYSE issues of only 29%. NYSE up volume/total volume lagged again, coming in at 40%. Semiconductors (SOXX +1.7%) were the big winners again, with NVDA (now at a $5 trillion market cap) adding 3%, AVGO rising 3.5%, TSM up 1%, and smaller semis (AMD, ASML, MU, LRCX, AMAT, and KLAC) popping 2%-4%. Smaller and less-known names joined the party, with ATEYY surging over 12%, ASX ripping 8%, SNDK spiking 16%, TER surging 20%, and RMBS popping 7%. Real Estate (XLRE) was again the weakest sector, dropping 2.7%. Staples (XLP), d
