Fed Cuts, Two More To Come

Powell signals two additional rate cuts by year-end as markets weigh the path forward

From AI and EV breakouts to Powell's guidance and a relentless melt up, markets are rewriting the playbook in real time.

Tesla & IonQ Massive Run

TSLA and IONQ have ripped higher, and Vista Shares ETF (WILD) caught the entire move. The fund is having a solid YTD, rebalancing at the right time to capture gains in the AI and EV cycle.

FOMC Cuts, More on Deck

The Fed cut rates by 25 bps, as expected. The bigger headline came from the September SEP ( Summary of Economic Projections), which now projects two more cuts by year-end. Powell also reminded markets there are still two meetings left in 2025, leaving plenty of room for flexibility.

Source: MorningStar

This is dovish guidance with a steady hand. The Fed is telling us it wants to ease, but without sparking another runaway risk cycle. Investors are hanging on every word from Powell's commentary to gauge how aggressive this path might get.

Melt Up Continues Against All Odds

Markets keep grinding higher against expectations of a correction. The S&P 500 is pushing new highs, and the positioning data explains why: NAAIM exposure sits at 84, well below the fully invested zone of 95-100. Institutions are still underweight, and that means forced buying whenever the market squeezes.

This is the fuel behind the melt up. It doesn't mean risk has vanished, but it does mean sidelined capital is still being dragged into equities… whether managers like it or not.

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Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.