Analysis: If the Fed cuts interest rates by 50 basis points, it may dampen market sentiment and trigger a more severe pullback.

[Analysis: If the Fed cuts interest rates by 50 basis points, it may hit market sentiment and trigger a more severe pullback] TA Securities stated that if the Fed suddenly cuts rates by 50 basis points, it may initially boost stocks in interest rate-sensitive sectors such as real estate and utilities, but it could also exacerbate concerns that the Fed believes the economy is weaker than the market expects. This shift from "soft landing" to "hard landing" could dampen market sentiment and trigger a more severe pullback, especially in cyclical sectors such as energy and industrials. Even the technology sector may face valuation pressure unless company 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)