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Morning Bid: Dollar Slides as Job Worries Mount

Investors expect nearly three Federal Reserve interest rate cuts this year, supporting a market rally despite the economy not being in recession, with S&P 500 near 6,500 points.

  • Next week, Wall Street piled into bets the Federal Reserve will cut rates, lifting equities as the NASDAQ jumped nearly 2% and the S&P 500 rose 0.3%.
  • After a weak jobs report last week, markets priced in earlier Fed easing as traders brace for almost three Federal Reserve cuts this year starting in September amid stalled inflation.
  • Ahead of the Fed meeting, key inflation gauges due this week will be closely watched as the core consumer price index is projected to rise 0.3% on Thursday and the Producer Price Index on Wednesday.
  • Treasury market softened and analysts flagged supportive financial conditions for stocks, with 10-year Treasuries yield at 4.05% and 2-year Treasuries at 3.49%.
  • Historically, non-recessionary rate-cut cycles have seen the median S&P 500 climb as much as 50%, and September gains can be offset if easing occurs this month, according to Jim Reid at Deutsche Bank AG.
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Bloomberg broke the news in United States on Sunday, September 7, 2025.
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