Stock Market Today: Stocks slip as rate cut bets put growth in focus
Stocks are trading near record highs Wednesday, but the key driver of rate cuts is weighing on risk sentiment.
Check back for updates within the course of the trading day
U.S. equity futures edged lower in early Wednesday trading, while the dollar slipped against its global peers, as investors adjusted to a fresh reality of lower interest rates in key markets around the sphere that may most likely test risk sentiment over the arrival months.
Stocks ended higher on Wall Street the day prior to this, with the S&P five hundred notching its forty first closing high of the year, as a late-session surge for Nvidia (NVDA) helped offset concerns over fading consumer sentiment all through the sphere's biggest economy.
The Conference Board's closely-tracked reading showed the largest month-on-month decline in three years, with respondents noting underlying concerns over the labor market, and added to bets on yet one more outsized Federal Reserve rate cut later this autumn.
The CME Group's FedWatch tool, in reality, pegs the probabilities of a 50 basis point cut in November at around fifty eight.1%, up from just 37% a week ago, while rate-sensitive 2-year notes yields continue to slide lower and were last marked at three.533% in overnight trading. Scott Olson/Getty Images
Rate cut signals from the European Central Bank, besides as a 0.33 day of reductions in China and talk of policy persistence from the Bank of Japan earlier this week, laid the groundwork for a more uncomplicated monetary backdrop heading into the final months of the year, but added to global growth concerns at the identical time.
Which helps lift gold prices to yet one more record high all through the overnight session, while putting modest pressure on most global stock benchmarks, including those on Wall Street.
Related: Goldman Sachs shifts view on economy, Fed rate cuts
Futures contracts tied to the S&P five hundred suggest a modest 9 point pullback to commence the trading day, with the Dow Jones Industrial Average which is referred to as 25 points from last night's record close.
The tech-focused Nasdaq, meanwhile, is often which is referred to as 70 points lower with Nvidia, Tesla (TSLA) and Intel (INTC) marked red in premarket dealing and Micron Technology (MU) edging zero.26% higher earlier than its fourth quarter earnings after the closing bell.
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In Europe, the region-wide Stoxx 600 became marked zero.14% lower in early Frankfurt trading, while Britain's FTSE 100 edged just zero.065% higher because the stronger pound put pressure on export stocks.
Overnight in Asia, China shares added to the day prior to this's gains after the PBOC cut a key bank lending rate by 300 basis points, the foremost on record, because the government doubles-down on its hefty stimulus effort all through the sphere's second-largest economy.
The regional MSCI ex-Japan benchmark rose zero.32% into the close of trading while the Nikkei 225 ended zero.19% lower in Tokyo.
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