The biggest positive news from the Fed today is the purchase of $40 billion per month in
short-term bonds, which doesn't count as QE, but is positive for U.S. stocks and risk assets.
Moreover, the start of purchases is earlier than Wall Street expected. Originally, Wall Street anticipated it would begin in January 2026, but now it's been moved up to December.
Historically, there was a similar event in October 2019 when the Fed directly injected $75 billion, leading to several months of consecutive gains in U.S. stocks, followed by
March 2020,
when the Nasdaq rose from 7,700 to 9,800.
Historical data is for reference only.
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