US EditionAsia-Pacific Markets Track Wall Street Gains on Rising Fed Rate-Cut Expectations
Traders price in an 85% chance of a December Federal Reserve rate cut, boosting major US stock indexes and easing bond yields amid mixed economic signals.
- On Tuesday, Wall Street rallied as traders priced a nearly 85% probability of a December Fed rate cut, lifting all three major U.S. indexes with the Dow up 1.4%.
- A raft of economic reports showed cooling spending and inflation, including softened retail sales and producer prices, while dovish Fed remarks from New York Fed President John Williams boosted December cut expectations.
- Easing bond yields helped lift stocks across sectors, with the Russell 2000 index jumping 2.1% and retailers like Abercrombie & Fitch and Kohl's surging 37.5% and 42.3%, respectively.
- Economists said the Fed and Chair Jerome Powell could be leaning toward a Dec. 10 cut, while reports that Meta Platforms may buy AI chips from Alphabet rattled chipmakers.
- Markets expect interest rates to trend lower through 2026 as European stocks look set to open higher amid rising expectations for U.S. easing, with Brian Jacobsen saying, `Taking a pause on rate cuts would probably do more damage to sentiment than a cut would help.
15 Articles
15 Articles
The hope for an early cut in interest rates in the US continues to give the global stock markets tailwind. After strong price gains in New York and Tokyo, the recovery rally is also expected to continue in the DAX.
Kohl's Jumps 42% as Wall Street Surges
The US stock market rallied Tuesday on hopes for a coming cut to interest rates. The S&P 500 rose 60.76 points, or 0.9%, to 6,765.88 after breaking out of a morning lull and is back within 1.8% of its all-time high. The Dow Jones Industrial...
New battle for dominance in AI brought by Alphabet and Nvidia rivalry, splitting the tech industry in two - Decline in 10-year performance brought information that Kevin Hassett is the favorite to helm the Fed - Below 20 points the fear index
Wall Street ends higher as Fed rate cut bets gather steam | Honolulu Star-Advertiser
NEW YORK >> Wall Street extended its rally today as a spate of economic data appeared to support the case for the U.S. Federal Reserve to implement its third and final rate cut of the year in December, while softness in the tech sector limited the Nasdaq’s gains.
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