US futures proceed to ramp larger on the session

The Fed wasn’t as dovish as market players would’ve hoped but they most certainly didn’t take anything away from the market pricing before the decision yesterday. Traders are holding steadfast in expecting ~45 bps of rate cuts by year-end and as mentioned earlier, the FOMC meeting had a little something for everyone and the onus is on US data to change what has been priced in.

The dollar was firmer earlier in the day but has given back some of the gains with EUR/USD back up to 1.1825 from around 1.1780 earlier. Meanwhile, gold is also flat at $3,660 currently after having touched a low of $3,634 just a couple of hours ago. The turnaround is being led by equities though, which have been ramping higher ever since Asia trading. S&P 500 futures are now up 0.8% on the day:

You can see the kind of volatility that we got during the Fed decision and into the US close yesterday. But ever since then, it’s been a steady ramp higher for stocks as investors are taking to the mantra of buy now, worry later. As mentioned above, the onus is on US data to change the market perception and Fed outlook for the month(s) ahead.

We won’t have to wait too long though. There is the weekly initial jobless claims data coming up later today but the big one will only come on 3 October via the next non-farm payrolls report.