The US stock market should close higher today measured by the main indices.
The Federal Reserve pivot towards lower interest rate new from yesterday Federal Reserve's statement and press conference is too strong a gravitational pull higher for US stocks.
Once the Federal Reserve sets a target significantly lower for the Federal Funds Rate, its key rate, interest rates levels the world over will feel a pull downwards and slowly interest rates levels globally will start to decrease.
Lower interest rate levels mean lower loan payments on corporate loans for large corporations, small and medium enterprises. Large corporations, small and medium enterprises could start returning the excess cash from loans to shareholders via stock buybacks, which will pull the general US stock market level higher and individual stocks will mostly increase.
Today the US stock market will be mainly analyzing the Federal Reserve pivot news from yesterday.
Possible beneficiaries in the mid-term are Bitcoin stocks like Coinbase, Robinhood Markets, social media up and coming stocks like Snap and Pinterest, as well as commodities producers like Exxon Mobil, Chevron, BP, Total, Shell and gold miners such as Barric Gold, Wheaton Precious Metals, Eldorado Gold Corporation, Yamana Gold. Financials like Goldman Sachs, JP Morgan, Morgan Stanley will also benefit.
Basically, the Federal Reserve pivot will lift if not all, than most boats, stocks in the coming months, according to Wolfteam Ltd.'s corporate view.
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