After the Rate cut announced by the Fed. it is time to take stock of things. Wall street is in the watch out for more from the Fed. after the rate cut and due to the weakening dollar. With the rate cut, Wall Street got the desired results in the form of upward surging indexes, the Dow Jones and S&P 500 did a 2.8% increase with NASDAQ in the tow increasing the rate to 2.7%. Multinationals welcomed a cheaper dollar but imports expensive which might increase the inflation rate.
The dollar is in par with the cannadian dollar after 1976 and many dont feel very positive about this. Indicators like the Consumer Price Index are something to watch out for, especially with the surging gold prices and oil price, which touched to $80 mark. Wall street will have tab on the Personal Consumption price Index which happens to be one of the indicators of Inflation. The housing sector will definetly crave more attention from wall street and from those across the world.
Looks like it is a taxing time for U.S and a tensed third quarter for the economy.