Fed Cut Seen Imminent as Stocks Rise

Reuters poll calls a September rate cut a done deal, buoying Wall Street. Traders now watch Michigan sentiment and US–China talks in Madrid.

TL;DR:

🏦 September Fed cut seen imminent
📈 Wall Street extends gains on hopes
🤝 US–China trade, TikTok talks set
🧭 Michigan consumer sentiment due today

September Fed Cut Seen Imminent

A Reuters poll signaled broad consensus for a September Federal Reserve rate cut, with at least one additional move likely by year-end, keeping easing expectations firmly in place. The Financial Times reported the Fed is poised to lower rates even as inflation remains a risk, underscoring a policy pivot toward supporting growth. Markets interpreted the setup as a tailwind for duration and growth exposures. Source Source

Wall Street Extends Gains

U.S. stocks advanced as investors maintained bets on imminent Fed easing following the latest inflation data. Rate-sensitive pockets outperformed and volatility eased into the close, reflecting improving risk appetite ahead of key macro prints. The move reinforced a pro-risk tone across growth-heavy benchmarks. Source

US–China Trade, TikTok Talks Set

U.S. Commerce Secretary Gina Raimondo’s deputy and China’s Vice Premier will meet in Madrid next week, with trade frictions and TikTok on the agenda, according to Reuters. Markets will watch for signs of de-escalation that could reduce policy risk for tech platforms and supply chains. Any progress could ease headline risk premiums in U.S.–China–exposed equities. Source

Michigan Consumer Sentiment Due Today

The University of Michigan Consumer Sentiment Index is due today and will be scrutinized for shifts in inflation expectations and spending intentions. A firmer read could temper aggressive easing bets, while softer sentiment may reinforce the case for cuts. Traders will watch the 1-year and 5–10-year expectations components closely. Source

September Fed Rate Cut Seen As Done; Additional Cuts Expected