US EditionStocks Edge Downwards After Rallying on US Rate Hopes
Investor optimism for Federal Reserve rate cuts fades due to tariff worries impacting inflation and corporate profits, with an 84% chance of a cut next month, analysts say.
- US equity futures retreated amid fading optimism for Fed rate cuts, with S&P 500 futures down 0.3% and Nasdaq 100 futures falling 0.4% as of 8:30 a.m.
- Federal Reserve Chair Jerome Powell signalled shifting risks toward economic weakness at Jackson Hole, Wyoming, as tariffs' visible price effects and inflation concerns complicated the Fed's easing path.
- Yields moved higher, with the 10-year US Treasury yield rising three basis points to 4.28% and the German 10-year bund yield climbing five basis points, while the euro fell to $1.1695 and the British pound dropped to $1.3503 as risk appetite softened.
- A plunge in short-end Treasury rates steepened the US yield curve to its sharpest since 2021, while the S&P 500 fell for five straight sessions amid fragile sentiment.
- All eyes now turn toward a US GDP report on Thursday and a key US inflation gauge on Friday, while Nvidia, AI-chip maker, reports earnings Wednesday amid traders' 84% probability of a Fed cut next month.
39 Articles
39 Articles
Stocks Rally Stutters as Rate-Cut Euphoria Fades: Markets Wrap
(Bloomberg) -- US equity futures retreated and bonds fell as some of the euphoria around expectations of Federal Reserve interest rate cuts eased, with concerns about tariffs and their impact on inflation and corporate profits back in focus.
Rally Stalls as Rate-Cut Optimism Fades
US equity futures and European stocks retreated as some of the euphoria around expectations of Federal Reserve interest rate cuts eased, with concerns about tariffs and their impact on inflation and corporate profits back in focus. In China, the financial hub of Shanghai eased home-buying rules in the latest attempt by authorities to contain the nation’s prolonged property crisis. Eligible residents, including those from outside Shanghai, can no…
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European stocks fall back after rallying on US rate hopes
Stocks slipped in European trading Monday as investors locked in gains fuelled by the clear shift toward lower rates by the US Federal Reserve, which helped Asian markets kick off the week with a rally.
Stock prices on major European stock exchanges are mostly falling at the start of the new week. The optimism sparked among investors on Friday by signals from the US about an imminent interest rate cut has faded, analysts say.
Stocks Set to Open Lower as Fed Rate-Cut Optimism Fades, Nvidia Earnings and U.S. PCE Inflation Data Awaited
September S&P 500 E-Mini futures (ESU25) are down -0.24%, and September Nasdaq 100 E-Mini futures (NQU25) are down -0.32% this morning, pointing to a slightly lower open on Wall Street after last Friday’s rally as some of the optimism around expectations for Federal Reserve interest rate cuts faded.
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