Why IMU is a multi multi bagger, page-28223

ASX futures down 123 points - I think the ASX will fall much further than that though.

Morning Wrap: ASX set to tumble as Dow plunges 1,123 points; Bain eyes higher offer for Insignia; Macquarie considers $5 billion asset sale

MorningWrap: ASX set to tumble as Dow plunges 1,123 points; Bain eyes higher offer forInsignia; Macquarie considers $5 billion asset sale

ASX 200 futures trading down 123 points (-1.48%) to 8,191, as of 8:30AM.

The ASX is expected to fall after a sharp drop in US markets, driven by the Federal Reserve's forward guidance following a 0.25% rate cut. The Fed now projects rate reductions of only 50 basis points in 2025, down from its earlier forecast of 1%.

OVERNIGHT MARKETS

• US equities were lower in Wednesday trading as stocks ended near worst levels following the FOMC decision. S&P 500 posted worst session since early August (yen/VIX event), Nasdaq worst since early August, Russell 200 worst since Jun-22. Dow Jonesposted 10th straight decline, longest since 1974.
• All sectors lower, though Big tech a key drag; NVDA not as bad but TSLA today's big decliner. EVs, REITs, Regional banks, credit cards, life insurance, PE, precious metals, toys, restaurants, software, capital goods, trucking, food, pharma, biotech, E&Ps among worst performers.
• Fed dials back rate cut expectations for 2025, market now pricing in two 25bp cuts (from four 25bp cuts). Chair Powell said slower pace of rate cuts reflects expectations of higher inflation, though also noted inflation story still "broadly on track." Also emphasised Fed can be more cautious in reducing rates amid economic strength.
• US Treasuries under pressure with curve bear flattening; 2Y back above 4.35%, highest since late November.
• US Dollar index up up 1.1% as greenback proves defensive amid market volatility.
• Gold finished down 0.3%.
• Bitcoin futures down 5%.
• WTI crude settled up 0.1%