"With the Federal Reserve meeting this week, investors are playing a wait-and-see game before bidding stocks higher to ensure there will indeed be a 25-basis-point cut. Wall Street will be listening closely to what Chairman Powell has to say regarding further cuts next year. Some feel that the ongoing layoffs, the worst since the pandemic hit in 2020, could help the Fed ease again in January."
"While the 25-basis-point cut is likely priced into the market, apprehension over Chairman Powell's commentary has bond traders mixed on the policy direction for rates in 2026. In addition, the bond market is expecting a high volume of new Treasury notes and bond issuance this week, which is creating supply pressures that are weighing on prices. The 30-year long bond closed Monday at 4.81% while the benchmark 10-year note was last seen at 4.17%"
"The major benchmarks were both lower to start the trading week, as numerous issues, including a stronger dollar, a weak economic outlook, the potential for demand to weaken, and uncertainty over Russia-Ukraine war negotiations, weighed on black gold. Brent Crude closed Monday at $62.51, down 1.95% while West Texas Intermediate finished trading Monday at $58.88, down 2%. Natural gas was the big loser Monday, falling over 7% to close at $4.91."
Markets opened the week lower with futures trading flat on Tuesday as investors awaited the Federal Reserve meeting. The Dow closed Monday at 47,739 (-0.25%), the S&P 500 at 6846 (-0.35%), and the Nasdaq at 32,224 (-0.14%). A 25-basis-point cut is widely priced in, but investors are focused on Chairman Powell's comments about additional cuts next year. Layoffs, the worst since 2020, could influence a January easing. Treasury yields rose across the curve amid selling and heavy upcoming issuance; the 30-year closed at 4.81% and the 10-year at 4.17%. Brent and WTI fell about 2%, natural gas plunged over 7% to $4.91, and gasoline prices are the lowest since 2021. Gold finished flat.
Read at 24/7 Wall St.
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