A distinct risk-on vibe dominated markets yesterday, as participants continued to digest the FOMC's 50bp cut earlier in the week, with said cut providing a fillip to sentiment as the dust continued to settle.
The S&P 500 rallied almost 2%, notching its first record close since July, while the Nasdaq gained just shy of 3% on the day. The path of least resistance continues to lead higher for the equity market.
The MPC kept Bank Rate unchanged, as expected, while also maintaining the pace of quantitative tightening at £100bln worth of gilts over the next year.
The GBP, however, was bid up post-BoE, as cable briefly rose north of the 1.33 figure to fresh highs since March 2022, likely as a result of the 8-1 vote split being marginally more hawkish than markets had expected.
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