Fed Cut Bets Propel Futures to Record Highs

Markets leaned into a September Fed cut as a Reuters poll firmed expectations. U.S. futures printed fresh records, while UK data showed zero growth, sharpening focus on next week’s FOMC.

TL;DR:

• 🏦 September Fed cut seen likely
• 📈 Futures hit record highs
• 🇬🇧 UK July growth flat
• 🗓️ FOMC meets Sept 16–17

September Fed Cut Seen Likely

A Reuters poll pointed to a 25 bp reduction on September 17, with at least one additional cut possible by year-end as growth risks rise and labor signals soften. Rate expectations anchored front-end pricing and underpinned risk appetite into the week’s close. Source

Futures Hit Record Highs on Cut Bets

S&P 500 and Nasdaq futures set new highs as traders priced easier policy, reinforcing momentum in large-cap growth and AI-linked names. The move reflected confidence that lower borrowing costs can extend the cycle despite mixed data. Source

UK July GDP Stalls; Manufacturing Contracts

UK output flatlined in July, with manufacturing posting its sharpest monthly drop in a year—signaling fragile momentum and lingering cost pressures. The stagnation keeps attention on the policy trade-off facing the Bank of England as growth cools while inflation risks persist. Source

FOMC Meets Sept 16–17

All eyes turn to next week’s FOMC, where markets will parse the statement and presser for the pace of easing and guidance into year-end. Event risk remains elevated as positioning leans dovish and liquidity thins into quarter-end; macro signals could amplify cross-asset volatility. Source Source