"Wall Street is optimistic as markets anticipate a 0.25% Fed rate cut, with investors cheered by President Trump's talk about a deal with China and strong gains in tech stocks. The S&P 500 hit a record high yesterday even though most stocks within it were flat or down, indicating that it won't take much to move the market if Fed Chair Jerome Powell says something surprising in his remarks today. Yesterday was the 96th anniversary of Black Monday, the day in 1929 when the Dow Jones index fell 13%. This began a period of chaotic selling that didn't end until the stock market lost 89% of its value the following year, and the U.S. was plunged deep into the Great Depression."
"Trading is pretty much on hold today as investors wait for U.S. Federal Reserve Chair Jerome Powell to announce that he will, as expected, deliver a 0.25% cut to interest rates, bringing them down to the 3.75% level. Powell had better deliver: 99.9% of bettors on Fed funds futures have priced in the cut already, according to CME FedWatch. This is "the Fed put," according to Goldman Sachs."
Markets opened optimistic with futures rising after the S&P 500 reached a record high despite many constituent stocks being flat or down. Investor sentiment has been buoyed by President Trump's comments about a possible deal with China and discussion of Nvidia's Blackwell chips. Traders paused ahead of Federal Reserve Chair Jerome Powell's remarks as markets widely expect a 0.25% rate cut to 3.75%. CME FedWatch shows virtually all bettors have priced in the cut, and Goldman Sachs called it the "Fed put." Analysts note shifts from a Goldilocks regime toward greater dependence on central bank support.
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