Traders are increasing bets on a 25 basis point rate cut next month, and will face two "data bombs" tonight.
After the CPI was announced, the market increased its bets on the Fed's 25 basis point rate cut in September, while starting to unwind bets on a 50 basis point rate cut. Tonight, traders will gather more clues!
Reading Into US' July CPI Data
Bank of America: "Dropping" large technology and small and medium-sized stocks, the S&P 500 Equal Weight Index is also attractive.
Bank of America suggests that investors should set aside large tech stocks and small and medium-cap stocks and consider investing in the S&P 500 index with equal weight.
Powell will set the tone for rate cuts next week, and the most concerned question in the market may not have an answer.
Economists say that the magnitude of the interest rate cut in September will depend on the employment data in August, and the Fed's response could be one of three options...
Is it difficult to reduce by 50 basis points? After the CPI report is released, the market expects that the Fed will lower interest rates by 25 basis points in September.
After the highly anticipated release of the US July CPI data, Wall Street traders have increased their bets that Fed officials will cut interest rates by 25 basis points in September; the expectation of a 50 basis point cut has cooled off slightly.
US Stock Futures Tick Higher After Softer-than-expected CPI Data