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.
12 Articles
12 Articles
Morning Bid: Dollar slides as job worries mount
By Mike Dolan LONDON (Reuters) – What matters in U.S. and global markets today By Mike Dolan, Editor-At-Large, Finance and Markets Global stocks pushed higher on Tuesday as U.S. rate cut fever built and a wave of European merger activity helped offset the week’s political upheavals in France and Japan. With U.S. long-term bond yields sliding to four-month lows on Monday ahead of the week’s big debt auctions, the dollar fell to a seven-week low a…
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We are heading to the final week of inflation reports before the much-awaited Federal Open Market Committee next week, on September 17. There is a lot riding on the line for the Fed at this upcoming meeting. Markets are now
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