- A bit of steam was lost on Thursday in the rise in stocks that was fueled by the Federal Reserve's dovish stance and betting on a gentle economic landing due to concerns that the market had moved too quickly and too far.
- Wall Street's "fear gauge," the VIX, moved away from an almost four-year low after a surge that brought the S&P 500 within striking distance of its all-time high. Big tech came under pressure, with the Nasdaq 100 underperforming after an over 50% surge in 2023. Piles of derivatives contracts tied to stocks and indexes were due to mature on Friday, which could amplify instability.
- The dollar dropped vs all of its developed-market counterparts as Treasuries increased, pushing the 10-year yield below 4%. Gains in the euro and pound were also responsible for the move, as European central bankers indicated they are not in a rush to follow the US in cutting interest rates.
- Everything witnessed significant gains in the previous session, including Treasuries, commodities, and equities. This was due to the Fed's projection of more rate cuts in 2024 and Chair Jerome Powell's decision to refrain from challenging Wall Street's dovish trading.
- With gains of at least 1%, the pan-asset rise topped all previous Fed days since March 2009. A measure that measures the lowest return of the five biggest exchange-traded funds covering these assets can be used to demonstrate the extent and severity of the rally.
