Stock Market Update
16-Sep-24 12:05 ET
Rethinking Wednesday's rate cut
Dow +101.25
at 41495.03,
Nasdaq -144.56
at 17539.40,
S&P -9.31
at 5616.71
[BRIEFING.COM] The three major indices traded in relatively tight ranges over the last half hour.
Market participants are rethinking rate cut expectations. The probability of a 25 basis points rate cut on Wednesday dropped to 39.0% from 50.0% yesterday and 70.0% one week ago, according to the CME FedWatch Tool. Also, the 2-yr note yield, which is most sensitive to changes in the fed funds rate, is down two basis points to 3.56%.
This recalibration follows relatively disappointing data out of China. Some weaker-than-expected retail sales, industrial production, and fixed asset investment data for August has stirred growth slowdown concerns.
