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☆ JPMorgan economist who nailed half-point call sees another big Fed rate cut in November
▼ + stars: | 2024-09-19 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

At its much-anticipated meeting Wednesday, the Fed approved a half percentage point, or 50 basis point, cut to its benchmark funds rate that ran counter to the 25 basis point move that many Wall Street economists and strategists had been expecting. The benchmark fed funds rate now stands at 4.75% to 5.00% after Wednesday's move. Futures market pricing Thursday suggested a 25 basis point move in November followed by a 50 basis point cut in December, according to the CME Group's FedWatch. A basis point equals 0.01%. "Ultimately what we found most important in what Powell said was also among the least surprising things he said: future decisions are going to depend on the data," Feroli wrote.

Persons: Michael Feroli, Feroli, Jerome Powell, Powell Organizations: Federal Reserve, JPMorgan, Fed, Street Locations: U.S

☆ Stock market today: Indexes close at record highs and tech soars after Fed rate cut
▼ + stars: | 2024-09-19 | by ( Kelly Cloonan | ) www.businessinsider.com time to read: +3 min

Indexes rallied to record highs as investors cheered Wednesday's rate cut from the Fed. Jobless claims reinforced the Fed's message of a strong labor market, with last weeks's claims down 12,000. AdvertisementMajor stock indexes surged to record highs on Thursday, a day after a jumbo rate cut from the Federal Reserve. On Wednesday, the Fed cut interest rates for the first time in four years, slashing its benchmark rate by 50 basis points. The Fed's dot plot shows the central bank will likely cut another 50 basis points this year and 100 basis points next year.

Persons: —, Dan Ives, Ives, Jerome Powell, Powell, Richard Bernstein Organizations: Fed . Tech, Nvidia, Meta, Service, Federal Reserve, Dow Jones Industrial, Nasdaq, Broadcom, ASML, Labor Department, Treasury, Fed, Trump Media Locations: Here's

☆ The Fed doesn't want to fall behind the unemployment rate, says FedWatch Advisors' Ben Emons
▼ + stars: | 2024-09-18 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Fed doesn't want to fall behind the unemployment rate, says FedWatch Advisors' Ben EmonsBen Emons, FedWatch Advisors chief investment officer and founder, joins 'Fast Money' with reaction to today's rate cut.

Persons: Ben Emons Ben Emons Organizations: FedWatch, FedWatch Advisors

☆ Jim Cramer says Salesforce's collaboration with Nvidia should not be overlooked
▼ + stars: | 2024-09-18 | by ( Paulina Likos | ) www.cnbc.com time to read: +3 min

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. Jim Cramer urged people to be patient once the Fed's decision arrives at 2 p.m. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.

Persons: Jim Cramer, Stocks, Jerome Powell's, Jim, Salesforce, Agentforce, Mark Benioff, Brian Niccol, General Mills, Jim Cramer's Organizations: CNBC, Nvidia, Bank of America, Starbucks, VF Corp, Resmed, Marriott International, Alaska Air Locations: China

☆ The Fed gives the US its first jumbo interest-rate cut in 4 years
▼ + stars: | 2024-09-18 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

It's the first time the Federal Reserve has cut rates since March 2020. The unemployment rate also ticked down in August, giving the Fed the data it needed to cut rates. AdvertisementAccording to CME FedWatch, which estimates interest-rate changes based on market predictions, a rate cut was all but certain; the question was how big of a cut the Fed would implement. Additionally, some economists and Democratic lawmakers had for months been calling for a rate cut of at least 50 basis points. "They're going to cut rates this week," Bharat Ramamurti, a senior advisor for economic strategy at the American Economic Liberties Project, told reporters during a Monday briefing.

Persons: —, Jerome Powell's, Skanda Amarnath, Democratic Sens, Elizabeth Warren, John Hickenlooper, Sheldon Whitehouse, Powell, delinquencies, Bharat Ramamurti Organizations: Service, Federal, Market Committee, Federal Reserve, Business, CME FedWatch, Democratic, Fed, American Economic Liberties Locations: Jackson Hole , Wyoming, America

☆ The 'Fed put' is back. Here's why central bankers will want to support the stock market, according to Fundstrat's Tom Lee.
▼ + stars: | 2024-09-18 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

That's because the Fed wants a "healthy economy," a big component of which is a strong stock market, he said. AdvertisementThe "Fed put" is back, and stock investors may not be fully pricing in the good news, according to Fundstrat's head of research Tom Lee. The prominent stock bull pointed to the idea that central bankers could move to further ease monetary policy at any sign of weakness in the stock market. AdvertisementA healthy economy, though, hinges on consumer and business confidence, which is largely tied to the stock market, Lee said. We could be seeing turbulence for the next 8 weeks, but this is also in the context of a very strong stock market in 2024," he added.

Persons: Tom Lee, That's, —, Lee, There's Organizations: Fed, Service, Wednesday

Mortgage rates have dropped substantially in recent weeks, with 30-year rates now almost 40 basis points down from where they started the month. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's interest rates will affect your monthly payments. Current 30-Year Mortgage RatesAverage 30-year mortgage rates have gone down this week and are now hovering below 5.60%, according to Zillow data. Mortgage rates are determined by a variety of different factors, including larger economic trends, Federal Reserve policy, your state's current mortgage rates, the type of loan you're getting, and your personal financial profile. Because markets are already anticipating that the Fed will lower rates, mortgage rates might not drop much in response to a Fed rate cut.

Persons: it's, refinance, you'll, Freddie Mac Organizations: Federal Reserve, Zillow, Fed Locations: Chevron

☆ What a Fed rate cut could mean for the world
▼ + stars: | 2024-09-18 | by ( Jenni Reid | ) www.cnbc.com time to read: +4 min

watch nowThe U.S. Federal Reserve is on Wednesday heading for its first interest rate cut since the onset of the Covid-19 pandemic — and despite the move being widely forecast, global investors are braced for impact. Global impactA key concern is the pressure interest rate differentials put on currencies. Oil and other commodities, usually priced in dollars, often receive a boost with a rate cut as a lower cost of borrowing can stimulate an economy and increase demand. "Interest rate cuts reduce the cost of borrowing in U.S. dollars, thereby creating easier liquidity conditions for companies around the world," Quilter Cheviot's Richard Carter continued via email. That includes whether the initial cut will reduce the Fed funds rate by 25 basis points or 50 basis points below its current 525 to 550 range.

Persons: —, Richard Carter, Cheviot, Cheviot's Richard Carter Organizations: U.S . Federal, Turkish, U.S ., Fed, Federal, Equity Locations: U.S, Canada, Mexico, Switzerland, Sweden

☆ Stock market today: Indexes edge up ahead of major Fed interest rate decision
▼ + stars: | 2024-09-18 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

US indexes edged higher as investors waited for a likely interest rate cut from the Fed. AdvertisementUS stocks rose on Wednesday as traders readied for what's likely to be the Federal Reserves's first rate cut in four years. "Though consensus is leaning toward a 50 basis point move, we look for the Fed to cut by 25 basis points today. AdvertisementFollowing the interest rate decision, all eyes will be on Fed Chair Jerome Powell, who will deliver prepared remarks during a press conference. "While the market has usually bounced immediately following the 2 PM rate decision, the sell-off usually starts at or near the end of Powell's post-FOMC press conference."

Persons: Jerome Powell's, —, John Lynch, José Torres, Jerome Powell, Powell, shouldn't Organizations: Fed, Traders, Service, Federal, Comerica Wealth Management, Interactive, Deutsche Bank, Investment

☆ The Fed rate cut will boost these kinds of stocks the most, according to UBS
▼ + stars: | 2024-09-18 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

The Federal Reserve's interest rate cut will give a boost to these stocks, according to UBS. UBS strategist Patrick Palfrey identified stocks that have historically outperformed when the Fed lowers interest rates, a move that he expects will especially benefit smaller, more volatile and less-efficient companies. He expects this is true across the large-cap and small-cap universes represented by the S & P 500 and Russell 2000. Here are five S & P 500 stocks UBS expects can benefit most. By comparison, the SPDR S & P Regional Banking ETF (KRE) is up more than 8% year to date.

Persons: Patrick Palfrey, Russell, Palfrey Organizations: UBS, Regional Banking, CNBC, Moderna, Resources, National Bank Financial, Perpetua Resources Locations: ROE, Cleveland , Ohio, Idaho

☆ Gold flat as investors focus on Fed
▼ + stars: | 2024-09-18 | by ( ) www.cnbc.com time to read: +2 min

Gold prices were flat on Wednesday as investors weighed chances of an outsized interest rate cut by the Federal Reserve later in the day. Gold prices were flat on Wednesday as investors weighed chances of an outsized interest rate cut by the Federal Reserve later in the day. The Fed is expected to announce a cut to interest rates for the first time in more than four years at 1800 GMT. Markets are now pricing in a 65% chance of a 50-basis-point rate cut, compared with 34% a week earlier, according to the CME FedWatch tool. Zero-yield bullion tends to be a preferred investment in a lower interest rate environment and during geopolitical turmoil.

Persons: Jerome Powell, Matt Simpson, let's Organizations: Federal Reserve, Index Locations: ., Lebanon

☆ Treasury yields inch higher as investors look to Fed rate decision
▼ + stars: | 2024-09-18 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +1 min

The 2-year Treasury yield was last at 3.6046% after adding over one basis point. U.S. Treasury yields were little changed on Wednesday as all eyes were on the Federal Reserve's interest rate decision expected for later in the day. The focus on Wednesday will be on the Federal Reserve's latest interest rate decision and guidance for the monetary policy outlook. While a interest rate cut is all but guaranteed, traders are divided about the size of the rate reduction. Investors are also hoping for hints about what Fed interest rate policy could look like for the remainder of the year and if more cuts are on the horizon.

Persons: Jerome Powell, Dow Jones Organizations: Treasury, Federal, Investors

☆ 3 reasons why today's Fed rate cut is the beginning of a more aggressive cutting spree than investors expect: chief economist
▼ + stars: | 2024-09-18 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

Read previewThe Federal Reserve is expected to slash interest rates today for the first time since 2020 as the labor market and inflation continue to cool. AdvertisementAssuming a 25-basis-point cut at every FOMC meeting until next July, that would leave an extra 75 basis points the central bank would have to work into its policy adjustments over that time. One is that the consumer could be weaker than they appear, and the labor market is likely to deteriorate further. AdvertisementWhile the Fed hopes to stimulate spending with rate cuts, Tombs is skeptical that they'll the impact the central bank wants. Advertisement"New mortgage rates need to drop by about 250bp before they will undershoot the average outstanding mortgage rate," Tombs wrote.

Persons: —, Jerome Powell's, Samuel Tombs, Tombs Organizations: Service, Business, Macroeconomics Locations: Jackson Hole , Wyoming

☆ European markets set for lower open as investors weigh UK inflation data
▼ + stars: | 2024-09-18 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +1 min

Italy's FTSE MIB meanwhile was set to fall by around 39 points to 33,784. LONDON — European markets were headed for a lower open on Wednesday as investors considered key data from the region and looked to the U.S. Federal Reserve interest rate decision. In Europe, U.K. inflation figures for August were published Wednesday, coming in at 2.2% according to data from the Office for National Statistics. The data comes ahead of the Bank of England meeting and interest rate policy decision scheduled for later this week. The Fed is all but guaranteed to announce an interest rate cut on Wednesday, which would be its first since it started hiking rates in March 2022.

Persons: Germany's DAX Organizations: CAC, LONDON, U.S . Federal, Office, National Statistics, Bank of England, Bank of Japan, U.S . Federal Reserve, Traders Locations: Europe, Asia, Pacific

☆ It’s Fed decision day, and investors aren’t 100% sure what to expect
▼ + stars: | 2024-09-18 | by ( Fred Imbert | ) www.cnbc.com time to read: +2 min

Traders across Wall Street expect the Fed to lower rates, ending the tightening cycle that began in March 2022. That said, investors aren't sure how big the rate reduction will be. To be sure, it closed more than 30 points below the closing all-time high of 5,634.58 set in July. We tend to agree with that, but also think the setup for a 'false breakout' remains high," wrote Krinsky. Elsewhere on Wall Street this morning , Barclays upgraded VF Corp to overweight from equal weight.

Persons: Chris Murphy, Susquehanna, Jonathan Krinsky, It's, Adrienne Yih Organizations: Federal, Traders, Barclays, Corp

☆ Elizabeth Warren calls for emergency-like Fed rate cut ASAP
▼ + stars: | 2024-09-17 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

New York CNN —The American economy appears to be just hours away from a major milestone: The first interest rate cut from the Federal Reserve since Covid. Yet there remains an unusual amount of drama over the magnitude of that rate cut, with some in Washington calling for a supersized move. Massachusetts Democratic Sen. Elizabeth Warren wants the Fed to slash interest rates at a pace rarely seen outside of a full-blown crisis. “It is clearly the time for the Fed to cut rates. For instance, in early 2008 the Fed slashed interest rates by three-quarters of a point or more on three occasions.

Persons: Massachusetts Democratic Sen, Elizabeth Warren, Jerome Powell, Warren, “, ” Warren, Sheldon Whitehouse, John Hickenlooper, Powell, Bill Dudley, “ dawdling, Dudley, ” Dudley, panicking, David Kelly, ” Kelly, ” Organizations: New, New York CNN, Federal Reserve, Massachusetts Democratic, Sens, Wall, Fed, Federal Reserve Bank of New, CNN, Democrats, Asset Management Locations: New York, Washington, Massachusetts, Federal Reserve Bank of New York

☆ CNBC Daily Open: Tech might not be the biggest beneficiary of rate cuts
▼ + stars: | 2024-09-17 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

Gary Hershorn | Corbis News | Getty ImagesThis report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. What you need to know todayThe bottom lineTechnology stocks benefit the most from low interest rates, conventional market wisdom says. When rates are low, that proposition appears attractive because returns are low elsewhere. This implies investors have been moving out of tech to other sectors that might experience tailwinds amid lower rates.

Persons: Gary Hershorn, Goldman Sachs, Christopher Barto, It's, CNBC's Hakyung Kim, Pia Singh, Yun Li Organizations: Trade Center, Corbis, CNBC, Nvidia, Meta, U.S . Federal, VanEck Semiconductor, Nasdaq, Dow Jones, Fort Pitt Capital Locations: Manhattan, Jersey City , New Jersey

☆ Stock market today: Stocks close mixed as investors gear up for major Fed rate decision
▼ + stars: | 2024-09-17 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

Tuesday's retail sales data boosted soft landing outlooks. AdvertisementIndexes were mixed on Tuesday with investors still split on the potential size of an interest rate cut, with less than 24-hours to go before the Federal Reserve announces its policy decision. Unanticipated strength in Tuesday's retail sales data convinced investors that the economy remains robust, and the S&P 500 briefly hit a record high before paring gains. Bond yields edged up ahead of the Fed decision, nodding to the possibility that the odds of a jumbo rate cut fell after retail sales surprised to the upside. AdvertisementStrong retail sales suggest that the Fed does not necessarily have to hurry with larger cuts, as the consumer economy appears intact for now.

Persons: —, LPL, Jeffrey Roach Organizations: Service, Federal Reserve, bitcoin, Treasury

☆ Treasury yields little changed as Fed meeting set to kick off
▼ + stars: | 2024-09-17 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +1 min

ET, the yield on the 10-year Treasury yield was down by less than one basis point to 3.6194%. The 2-year Treasury yield was last less than one basis point lower to 3.5506%. U.S. Treasury yields held steady on Tuesday as the Federal Reserve's monetary policy meeting is scheduled to begin, with policymakers widely expected to announce an interest rate cut at its conclusion. All eyes are on the Federal Reserve this week, with an interest rate cut from the central bank all but guaranteed. The key question across markets remains how big the rate cut from the Fed will be on Wednesday.

Persons: Dow Jones Organizations: U.S, Treasury, Federal, Federal Reserve, Fed, Traders, Bank of England, Bank of Locations: Bank of Japan

☆ History says these 5 sectors are poised for double-digit gains within a year after the Fed cuts rates
▼ + stars: | 2024-09-17 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

As expected, the Fed has been coy about cuts, leaving markets torn between pricing in a 25- or 50-basis-point reduction. "In cycles where rate cuts were able to prolong economic expansion and keep corporate earnings on an upward trend, stocks performed quite well," Belski wrote in a mid-September note. AdvertisementWhile rate cuts aren't a cure-all, Belski is confident that the economic expansion will continue, which will keep this bull market on firm footing. "But with significantly strong trailing one-year performance headed into this initial rate cut, future gains are likely to be more muted relative to historical norms." Sectors poised to outperform as the Fed finally cuts ratesAfter outlining how US stocks broadly have fared following cuts in the last four decades, BMO shared relative sector performance before and after periods of rate declines.

Persons: —, that's, Ohsung Kwon, Brian Belski, Belski Organizations: Service, Federal Reserve, Business, " Bank of America, BMO Capital Markets, Fed, BMO Locations: bankable, Montreal

☆ Stock futures are little changed as Wall Street anticipates a long-awaited Fed rate cut: Live updates
▼ + stars: | 2024-09-17 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

A trader works, as a screen broadcasts a news conference by Federal Reserve Chair Jerome Powell following the Fed rate announcement on the floor of the New York Stock Exchange on June 12, 2024. Stock futures were flat in overnight trading Tuesday as Wall Street anticipated a long-awaited rate cut from the Federal Reserve following an aggressive multiyear hiking campaign aimed at tamping down hot inflation. Futures tied to the Dow Jones Industrial Average added 28 points, while S&P 500 futures hovered near the flatline. Investors remain on high alert ahead of the first expected rate cut from the Fed at the conclusion of its two-day policy meeting Wednesday. CME Group's FedWatch Tool shows traders pricing in a 63% chance of a 50 basis point cut, and 37% odds of a 25 basis point move.

Persons: Jerome Powell, Peter Cecchini, Axonic, CNBC's Organizations: Federal, New York Stock Exchange, Stock, Federal Reserve, Dow Jones, Nasdaq, Dow Jones Industrial, Fed

☆ Bitcoin climbs above $60,000 ahead of Fed rate decision
▼ + stars: | 2024-09-17 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +1 min

Bitcoin reclaimed $60,000 on Tuesday as investors awaited details of the Federal Reserve's rate cutting plans. Bitcoin "is likely to react to the news of a Fed rate cut with some retrenchment as the short-term market dynamics filter out," said Philipp Pieper, co-founder of Swarm Markets. The market is divided on whether the Fed would reduce rates by 25 or 50 basis points. One basis point equals 0.01%. Investors have been anticipating Fed rate cuts, the growth of bitcoin ETFs and the outcome of the U.S. presidential election as the next catalysts to shake up the crypto market.

Persons: Bitcoin, cryptocurrency, Donald Trump, Philipp Pieper, bitcoin Organizations: Metrics, Federal Reserve, Swarm Markets, Nasdaq, Investors, U.S

☆ The Fed's biggest interest rate call in years happens Wednesday. Here's what to expect
▼ + stars: | 2024-09-17 | by ( Jeff Cox | ) www.cnbc.com time to read: +7 min

The meeting wraps up Wednesday afternoon, with the release of the Fed's rate decision coming at 2 p.m. "I hope they cut 50 basis points, but I suspect they'll cut 25. Here's a breakdown of what's on tap:The rate waitThe FOMC has been holding its benchmark fed funds rate in a range between 5.25%-5.5% since it last hiked in July 2023. The 'dot plot'Perhaps just as important as the rate cut will be the signals meeting participants send about where they expect rates to go from here. In June, FOMC members penciled in just one rate cut through the end of the year.

Persons: Jerome Powell, William McChesney Martin Jr, Andrew Harnik, they'll, Mark Zandi, that's, Tom Simons, Zandi, Robert Kaplan, There'll, Seema Shah, FOMC, Moody's, Goldman Sachs, Powell presser, Goldman, Simons Organizations: Federal Reserve, Committee, Moody's, Wall, Jefferies, Dallas Fed, CNBC, Asset Management Locations: Washington , DC

☆ Former Dallas Fed President Kaplan advocates for a half-point interest rate cut
▼ + stars: | 2024-09-17 | by ( Jeff Cox | ) www.cnbc.com time to read: +1 min

If Robert Kaplan still had a say in the matter, he'd be pushing for a half percentage point interest rate reduction at this week's Federal Reserve meeting. The former Dallas Fed president told CNBC on Tuesday that making the bolder move of 50 basis points would better position policymakers heading into the latter part of the year and the economic challenges ahead. "If I were sitting at the table, I would be advocating for 50 in this meeting," Kaplan said during a "Squawk Box" interview. One basis point equals 0.01%. Kaplan ran the Dallas Fed from 2015-21 and is now a managing director at Goldman Sachs.

Persons: Robert Kaplan, Kaplan, Jerome Powell, Jay Powell, Goldman Sachs Organizations: Dallas Fed, CNBC, Federal

☆ Gold's rally to records shows no signs of slowing
▼ + stars: | 2024-09-17 | by ( Fred Imbert | ) www.cnbc.com time to read: +2 min

Gold prices just won't stop rising. Year to date, gold is up nearly 26% — outpacing the S & P 500's 18% gain. Since ETF holdings only increase gradually as the Fed cuts, this upside is not yet fully priced in." Investors seeking exposure to gold can obtain it through exchange traded funds, such as the SPDR Gold Shares ETF (GLD) . The fund, which tracks gold prices and charges 0.4% in fees, is up nearly 25% in 2024.

Persons: Goldman Sachs, Lina Thomas, Thomas, Christopher Danely Organizations: Reserve, Goldman, Miners, Gold Miners, Citigroup, Micron Technology

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