The Wrap🌯 05th Nov 2023 | A Dovish Fed
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The Fed pauses, market rebounds, Real Estate rally pick ups steam
This was the US Fed week and against everyone’s expectations - the Fed choose to pause rate hikes with a dovish commentary. The gist of Jerome Powell’s 75 min long press speech was - the hike in US bond yields were doing some of the job for the Fed and as such the Fed took a choice to pause rate hike in this meeting.
Overall, I dont think even Jerome Powell knows what to expect in the next few months.
Market took it as a positive sign and rallied towards end of the week, with all three US indices - Nasdaq 100 (🔼6.48%), S&P 500 (🔼5.85%), Dow Jones (🔼5.07%) yielding positive returns for the week.
Closer to home, we too had a good(ish) week.
While Nifty was flat (🔼 0.85%), Real Estate has been a clear winner with the index itself returning 🔼10.11%. If you are a regular reader of #TheWrap🌯, you know about Real Estate theme for more than 6 weeks now, when we first started highlighting it.
I believe the real estate rally has legs and it being a large sector has lot of proxy plays. I have highlighted five of them in the charts section.
A bunch of economic data releases next week, and in the absence of any major interest rate decisions combined with selling of last month, expect some positive stock price movements in the coming weeks.
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