Market tension rises, US stocks under pressure
Before the Federal Reserve is expected to cut interest rates for the first time in over four years, the major US stock indices fell, with market anxiety over the extent of the rate cut prevailing. Among the 11 sectors of the S&P 500 Index, 8 sectors declined, while the healthcare sector rose slightly by 0.1%. The Russell 2000 Index, which tracks small-cap stocks, also fell by 0.2%. Mixed economic indicators over the past month have left investors on edge before the Fed makes one of the most unpredictable decisions in years. However, according to CME observation tools, recent dovish comments from current and former Fed officials have led traders to believe that there is a 53% chance of a further 50 basis point rate cut. Erika Groshen, senior economic advisor at Cornell University, stated that if the Fed cuts rates by 50 basis points instead of 25, it would skip the rate cut next month. If the Fed cuts rates by 25 basis points, it will be quicker to raise rates next month
On September 19th, before the Federal Reserve's highly anticipated first rate cut in over four years, major U.S. stock indices fell, with market anxiety over the extent of the rate cut taking the lead. Among the 11 sectors of the S&P 500 Index, 8 sectors declined, while the healthcare sector rose slightly by 0.1%. The Russell 2000 Index, which tracks small-cap stocks, also fell by 0.2%. Mixed economic indicators over the past month have left investors on edge before the Fed makes one of the most unpredictable decisions in years. However, according to CME observation tools, recent dovish comments from current and former Fed officials have led traders to believe that there is a 53% chance of a further 50 basis point rate cut. Erika Groshen, senior economic advisor at Cornell University, stated that if the Fed cuts rates by 50 basis points instead of 25, it would skip the rate cut next month. If the Fed cuts rates by 25 basis points, it will be quicker to raise rates next month