Welcome to Extreme Investor Network, where we provide you with exclusive insights and expert analysis on all things related to the stock market, trading, and Wall Street. Today, we are diving into the latest developments in the market, specifically focusing on the impact of FOMC member commentary on investor sentiment.
On Thursday (May 16), FOMC members Loretta Mester and Raphael Bostic hinted at a higher-for-longer rate path, which tempered investor expectations of a September Fed rate cut. This led to a slight decline in the Nasdaq Composite Index by 0.26%, highlighting the influence of FOMC members on market risk sentiment.
Despite this, the probability of a September Fed rate cut still remains positive. The CME FedWatch Tool reported a 68.4% chance of the Fed cutting interest rates in September on Thursday (May 16), only slightly down from 68.7% the week before.
In the midst of these developments, the US BTC-spot ETF market has been reflecting investor bets on a Fed rate cut. Flow data from Farside Investors showed total net inflows of $303.0 million on Wednesday (May 15) and continued positive flows on Thursday (May 16), marking four consecutive days of net inflows. This streak has not been seen since early April, indicating growing confidence in the market.
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