After the Cut: Inflation, Spending, and Smart Plays

Fresh news and strategies for traders. SPY Trader episode #1372. The Federal Reserve cut interest rates by 0.25 percentage points to a target range of 4.00%4.25% due to a softening labor market, despite inflation remaining elevated at 2.9% yearoveryear. Retail sales showed unexpected resilience, while manufacturing signals were mixed. The market reacted with profittaking in tech and a rotation to value sectors. Investors should watch the upcoming PCE Price Index and consider a cautious, diversified approach, overweighting consumer discretionary, financials, and healthcare, while being selective in tech.