Interest rate cuts are no longer just talk!❗️❗️❗️
Wall Street institutions tear up reports, changing forecasts, and the market bets that the probability of the Federal Reserve cutting rates by 25 basis points this week is 89.6%. The world waits for the Federal Reserve's meeting resolution to be announced, with the three major U.S. stock indices fluctuating in anticipation.
The market is always filled with uncertainty in an instant. The expectation for the upcoming Federal Reserve meeting in 2025 is a 25 basis point rate cut. According to the CME FedWatch Tool, the probability of the Federal Reserve cutting rates by 25 basis points at 4 AM Beijing time on Thursday has risen to 89.6%.
The three major U.S. stock indices continue to show a fluctuating trend as they await further developments. The indices are fluctuating in a narrow range, with the Dow Jones and S&P 500 slightly declining and the Nasdaq down by 0.01%. Popular U.S. stocks like NVIDIA rose by 0.64%, while Tesla fell by 2.70%, Google by 1.3%, and Apple by 0.56%.
Analysts state that the decision made by the Federal Reserve at this meeting will impact the subsequent policy paths of the Swiss National Bank, the Bank of England, the European Central Bank, and the Bank of Japan in late December.
The U.S. dollar index rose after fluctuating, standing above the 99 mark, while the offshore yuan slightly adjusted back to the 7.07 mark. Spot gold fell by 0.32%, and spot silver decreased by 0.69%, with the crude oil futures market index dropping over 1%.
On Monday, U.S. White House economic advisor Hassett (a popular candidate to succeed the Federal Reserve Chair) stated that rates should continue to be lowered. He believes that the current Fed Chair Powell might also consider a rate cut prudent.
Regardless of how the Federal Reserve handles internal disagreements or the current stagnation at this meeting, let’s wait and see.
