Markets React to Anticipated Fed Rate Cut and Global Developments
U.S. major stock indexes eased on Monday after gains last week, as markets weighed the likelihood of a Federal Reserve rate cut in September. The dollar strengthened, buoyed by remarks from Fed Chair Jerome Powell. Key economic data is expected before the Fed's meeting, affecting future policy decisions.
On Monday, U.S. stock indexes experienced a slight decline after Friday's gains, following Federal Reserve Chair Jerome Powell's indication of a potential September interest rate cut. The dollar rose in response to his comments, while investors awaited key economic data that may influence the Fed's forthcoming policy decisions.
Major financial players like Barclays and Deutsche Bank anticipate a 25-basis-point rate cut, while Fed funds futures traders show an 84% probability for such a move according to CME Group's FedWatch Tool. However, upcoming figures on personal consumption expenditures, expected before the Fed's mid-September meeting, could sway its policy.
Meanwhile, global markets also saw movements; U.S. crude and Brent oil prices edged up, on the back of geopolitical tensions, while European markets traded lighter due to a holiday in London. Economic discussions and trade talks involving U.S. and international leaders also unfolded, impacting market sentiments.
(With inputs from agencies.)
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