US interest rates lower, European rates down more than expected: The U.S. stock market is in a sort of euphoric state due to expectations that the Federal Reserve will soon make significant interest rate cuts. There is also an assumption that the ECB will continue cutting rates, albeit far less aggressively than the Fed. What’s striking is that stocks are reacting so positively, even though in the past they sometimes fell sharply when interest rates dropped. The reality is more complex. Read more...