The Fed pulled the trigger on a 25 bps cut — the first move in nine months.
Markets loved it. Tech ripped.

But Powell’s tone was careful: “risk management,” not victory laps.
So the real question is: Was this the start of a new leg higher… or just another Fed-day pop?

→ Fed cut 25 bps, lowering the funds rate to 4.00%–4.25% — the 4th cut in this easing cycle.
→ Powell called it a “risk management cut,” pointing to a softening labor market.
→ Inflation still sticky at 3.0%–3.1% PCE, but Powell downplayed tariff-driven price bumps as short-lived.
→ Nasdaq 100 reclaimed the 24,200 zone after erasing early losses.

Big winners during Powell’s speech (2:30–3:30 ET):

✔ Nebius Group (NBIS) ▲ +4.28%
✔ SanDisk (SNDK) ▲ +3.51%
✔ IonQ (IONQ) ▲ +3.29%
✔ Oklo (OKLO) ▲ +2.93%
✔ Reddit (RDDT) ▲ +2.92%
✔ Palantir (PLTR) ▲ +2.60%
✔ Tesla (TSLA) ▲ +2.44%
✔ Roblox Corp. (RBLX) ▲ 2.42%.

Meanwhile, Nvidia (NVDA) and Broadcom (AVGO) ❌ sold off earlier in the day on news of a China AI chip ban, before recovering part of their losses into the close.

This wasn’t a surprise cut — but it was a shift in tone.
Powell framed it as preemptive — cutting before a downturn hits.

That puts traders in a classic setup:

→ If easing bias builds: expect risk-on follow-through, especially in high-beta tech.
→ If dissent grows: hawk/dove splits could spark volatility around the next meeting.
→ Either way: the Fed just put a floor under the market — but not without conditions.

→ Level check: Nasdaq 100 reclaiming 24,200 = key confirmation zone.
→ Options flow: watch QQQ / tech IV — compression post-Fed often sets up the next move.
→ Dissent: Governor Miran wanted 50 bps — hawkish/dovish tension is alive.
→ Rotation: tech led, but rate-sensitive sectors (REITs, utilities, consumer credit) could quietly benefit.
→ Macro lens: Powell ruled out 50 bps now, but left the door wide open for more cuts this year.

Trigger: Fed’s 25 bps cut + Powell’s “risk management” tone
Control Zone: 24,200 reclaim
Sector Reaction: Tech led; Nvidia/Broadcom rebounded after China chip ban dip
Short-Term Bias: Cautiously bullish while 24,200 holds
Macro Catalyst: More cuts implied by year-end

Here’s how pros approach this setup:

→ Don’t chase the first spike — wait for confirmation above 24,200.
→ Watch sector rotation — tech grabs the headlines, but easing often bleeds into credit-sensitive names next.
→ Anchor to the Fed path — cuts imply support, but not immunity from volatility.

Bottom Line:
The tape turned at 24,200 — and tech ripped.
Now the question: does this rally have legs as more cuts get priced in,
or was it just another Fed-day sugar high?

_{Disclaimer
This letter is not offering investment, trading, or investment advice nor is based on any individual portfolio or business operation. We are not a registered investment, stock nor commodity advisor. One should consult with their own registered advisor to discuss investment strategies that are appropriate for their business or personal goals, risk tolerance and financial situation. Information in this report and on any website is derived from a variety of source believed to be reliable however no representation is made that the information is accurate, complete or correct. These lessons, newsletter and site content is not intended nor shall not constitute or be construed as an offer or recommendation to “buy”, “sell”, “trade” or invest in any securities, commodities, futures, options or other asset referred to in said lessons, reports or newsletters. Rather, this research is intended to identify situations and circumstances that those in the trading community should be aware of to better help assess and improve their own risk management skills.}