A 50 basis point rate cut by the Fed may trigger market fluctuations.

[If the Fed cuts interest rates by 50 basis points, it may trigger market fluctuations] TA Securities stated that if the Fed suddenly cuts rates by 50 basis points, it could initially boost stocks in rate-sensitive sectors such as real estate and utilities, but it may also exacerbate concerns that the Fed believes the degree of economic weakness is more severe than the market expects. This shift from a "soft landing" to a "hard landing" could dampen market sentiment and trigger a more pronounced pullback, especially in cyclical sectors like energy and industrials. Even the tech sector may face valuation pressure unless corporate earnings prove resilient. TA Securities stated that if the Fed maintains the interest rate unchanged, and the upcoming data continues to show weakness, the market may interpret this as a policy mistake. This situation could prompt investors to shift towards healthcare and consumer staples stocks, pulling funds out of financials, industrials, and growth-dependent technology sectors. U.S. Treasury prices may rebound, while overall risk appetite may wane. (Jin Shi)